This week was all about yields, again. But the move was down, not up. The Treasury and the Fed did a subtle tag team on the market as they both acknowledged that rising yields are not particularly welcome and they will refrain from any action that might further panic the market. While the supply of US Treasuries will remain yuge over the next 12 months, the signalling value of two central authorities pointing their huge government fists at rising yields has allowed the invisible hand to reverse course and stop selling bonds. While government authorities are not always successful in getting everything they want, the ... (full story)