Treasury Yields Surge Following Allegedly Good Data; Is Bernanke Getting the Message?

Curve Watchers Anonymous notes treasury yields are on the rise following allegedly good economic data.

For my take on the GDP, please see About that "Beat the Street" GDP Number. Nonetheless, the bond market has other ideas.

Historical Yield Curve - Monthly Close



click on chart for sharper image

• $TYX 30-Year Green
• $TNX 10-Year Orange
• $FVX 05-Year Blue
• $IRX 3-Month Brown

Market Gets Message

On July 17, Bernanke boldly stated Markets finally get message.

Federal Reserve Chairman Ben Bernanke on Wednesday admitted there has been some confusion as the central bank has tried to explain plans to scale back its stimulus policies, but said he thought financial markets were “beginning to understand our message.”

Bernanke’s comments came as he reiterated Wednesday that he expected the central bank to start tapering its bond-buying stimulus program this year. But, he emphasized, the Fed was not on a “preset course.”

Talk is Cheap

Bernanke and numerous other Fed spokesmen attempted to talk yields lower following the huge surge since the beginning of May.

Let's tune in and see how well talk worked.

$TYX - 30 Year Yield Daily Chart



$TNX - 10 Year Yield Daily Chart



It appears the bond market may have had enough of Bernanke's talk. Is Bernanke getting the message?

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com