Yesterday, Ben Bernanke crushed the bond market by reassuring investors that not only would tapering back of Federal Reserve bond purchases be forthcoming in 2013 as long as everything goes according to the central bank's plan, but also that the recent surge in Treasury yields was a good thing to be welcomed.
At the end of the day, the yield on the 10-year Treasury note closed at 2.35%, up 14 basis points from where it was earlier in the afternoon, before the FOMC released its monetary policy statement and Bernanke took the stage for his press conference and Q&A.
This morning, the bond market carnage continues. The yield on the 10-year Treasury note hit a high of 2.47% before backing down to current levels at 2.40%, up 5 basis points from yesterday's close.
With today's move, 10-year yields are now the highest they've been in two years and are hovering right around a key technical level, as the chart below shows.
As one trader puts it, " 2.39 is a key support level and then nothing but air and space until 2.85."
Business Insider/Matthew Boesler, data from Bloomberg
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