Global Economic
Trend Analysis

Recent Posts

Wednesday, September 21, 2011 2:19 PM

Operation Twist a "Visual" Success: Yield on 30-Year Treasury Drops 17 Basis Points, Flirting with a Break of 3%; Alas Patient Will Die

Mish Moved to MishTalk.Com Click to Visit.

Curve Watchers Analysis is following the Operation Twist Story.

Operation Twist Early Results

Yields Rise at Short End, Sink on Long End

Yields are behaving as the Fed wanted. Note that the 30-year long bond is flirting with a sub-3% print. However, much of the move in long-term rates was front-run. Nearly everyone expected this move (even 70% of economists). I am wondering what the other economists were thinking.

The one-day results are a spectacular success visually as depicted in the above charts. Unfortunately, none of this can possibly do much of anything for the real economy, and the patient will die.

Mike "Mish" Shedlock
Click Here To Scroll Thru My Recent Post List

Last 10 Posts

Copyright 2009 Mike Shedlock. All Rights Reserved.
View My Stats