Charts: What has the announcement of QE2 done to the markets?
12 November, 2010, 11:02. Posted by Zarathustra
Tags: Economy, Quantitative Easing, US
To assess the effect of the announcement of quantitative easing, I randomly drew the following three charts. A picture is worth a thousand words, so there you go:
US Treasury 10-year yield
US Treasury 5-year yield
Dollar Index (DXY)
The initial response to the QE2 announcement seemed to be in-line with what the Fed hope: yield dropped, dollar weakened. But that only happened for a day or two.
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About Zarathustra
Zarathustra: Founder and Managing Editor of Also sprach Analyst. Once an analyst, now an investor and entrepreneur. Based in Hong Kong, but Londoner at heart.