The Yield Curve’s Reaction to QE2

I wanted to show you why the QE2 announcement was such a big deal. Here’s a look at the yield curve from before and after. The blue line is for Tuesday. The black line is yesterday.

I doesn’t look terribly dramatic, but the middle part of the curve got squished down while the end got pushed up. The spread between the middle and the end is at a record.

Posted by on November 5th, 2010 at 11:01 am


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