The verdict

The bond market does not seem to respond favorably to QE2. The sharp rise in bond yields of the past few days will create a negative environment for the economy.

Rising yields are bad news for investments, consumer borrowing, and financial assets.

One more item. Yields have a distinct seasonality: down in summer and up in winter.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked best market timer in the 12 and 6 months ending 8/20/10 by Timer Digest

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