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An outstanding interactive chart of the 10-year Treasury yield vs. the Fed's various stimulus...

An outstanding interactive chart of the 10-year Treasury yield vs. the Fed's various stimulus programs shows one pretty clear trend: Sell Treasurys while QE is underway and buy them back when QE ends.
Comments (6)
  • User 502794
    , contributor
    Comments (122) | Send Message
     
    you've got that backwards...you BUY treasuries with QE and SELL them w/out
    20 Jun 2012, 08:53 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1560) | Send Message
     
    Treasury yields go down with QE.....prices go up. SELL Treasuries with QE, buy without when yields go back up and prices drop.
    20 Jun 2012, 09:00 AM Reply Like
  • User 502794
    , contributor
    Comments (122) | Send Message
     
    yes, yields go down with QE and prices go up with it...therefore you BUY treasuries with QE
    20 Jun 2012, 09:04 AM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (540) | Send Message
     
    Am I the only one that can read a chart?

     

    Treasury yields clearly rose sharply while both QE1 and QE2 were underway, and fell fast once the programs were halted.

     

    The reasoning is that QE is stimulative, hence yields rise. The withdrawal of QE is relatively restrictive, thus yields fall back down.
    20 Jun 2012, 09:28 AM Reply Like
  • dagoddar
    , contributor
    Comments (3) | Send Message
     
    Yes the chart tells the tale
    Yields went up during QE
    And my hedge using TLT has been good so far...
    Looks like it is time to sell

     

    Dave
    Long TLT ... But not for long
    20 Jun 2012, 09:32 AM Reply Like
  • Virg
    , contributor
    Comments (21) | Send Message
     
    QE or no QE..the real catalyst for rates spiraling downward has been the "flight to quality" trade related to Europe, in my opinion...If, and when, European problems are resolved enough to cause the press to turn to problems here in the U.S. and with no QE I believe interest rates will rise, i
    20 Jun 2012, 09:50 AM Reply Like
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