What Ben Bernanke taketh away, his buddies at the Fed giveth back.
Meanwhile, we just wish everybody would shutteth up.
Bond yields blew out last week after the Federal Reserve informed market-watchers that it is eyeing mid-2014 as an end for its bond-buying program. The Fed's forecast triggered a selloff of more than 45 basis points that brought 10-year yields as high as 2.667% on Monday, the highest level in two years.Brief pit stop here, Dumbest fans. Because fixed income can be kind of tricky with the whole yield goes up, price goes down thing, we'd like to quickly break down what happened for bond market novices. Put simply, CNBC showed Ben Bernanke chattering on TV, which caused everybody on Wall Street to freak out and sell their bonds. Hope that clears things up for you. In the same vein, Bernanke's friends at the Fed felt the need to clear a few things up in the wake of the bond market's bloodletting. As pointed out in a Tuesday research note from CRT Capital Group's David Ader, it took comments on Monday from regional Fed presidents William Dudley, Narayana Kocherlakota and Richard Fisher to soften the impact of Bernanke's statements and stabilize the market. "What we are hearing is that the Fed is not happy with the violence or magnitude of the rate increase and ancillary action in other markets and is attempting to offer some caution and clarification to what the
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