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.