Two Year Yield Gets Hit Hard on Fed Taper Change



The Treasury market was thrown for a loop this week as the Fed unexpectedly decided not the taper. The chart below shows the 2-Year Treasury Yield ($UST2Y) bearing the brunt of this "adjustment". Notice how the yield advanced as tapering talk took hold from April to August. After stalling in the .50% range for two weeks, the yield plunged below .35% as short-term yields bore the brunt of the re-pricing.

130920ust2y


Click this image for a live chart

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