The 30-Year Bond Gets Clobbered

by: Market Blog

By David Berman

While U.S. Treasury bond moves have been fairly tame in reaction to the Federal Reserve's new quantitative easing program, one bond stands out: the 30-year U.S. Treasury. The yield spiked to 4.03 per cent right after the Fed's announcement, a gain of about one-tenth of a point, which is the biggest one-day move in about two months.

The reason is likely due to the fact that the Fed likely won't be buying many of these longer-term bonds, but will instead focus on the 10-year bond since the bulk of consumer debt is tied to these yields.