CHART OF THE DAY: Treasuries TANK On Final Day Of QE2

button more charts
button chart prev
button chart next

Today is the final day of QE2, and many have bet that when the Fed’s bond-buying program ends, Treasuries will tank.

And holders of this view might feel good about their view based on action over the final few days, especially today.

As you can see, yields have really run up over the last few days, with a big pop today (the chart shows 10-year yields).

But before you blame the end of QE2, consider two things.

First, stocks have been on a huge run for all kinds of reasons lately, and that’s always positive for yields. And also, people are talking about end-of-quarter rebalancing, as funds allocate money away from credit (which has done well) to equities) which have underperformed.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at