hands up whos in for consolidation, page-14

Unfortunately you got it wrong on all counts...abd i will be very quick as I am middle fo trades.

Spiking [not rising bond yields, which is alwys healthy] the most recent Obama tax cuts yields will mean other ways to service debt and pay its coupons

If the Fed for example auctions $20 billion in 10 year notes abd demand is healthy then this will keep the yield at relatively healthy levels. If demand for debt issuances is low then those biddind will ask for a higher yield then the yield goes up.. but now we have a double wammy not only have 10 year bond issuances not been over subscribed but the recent tax cuts means debt will need to be serviced in other ways and this means a raise in interest rates to offset all the 10 yr coupons that will be due...but there is more.. as the 10 yr/30yr swap spread widens it makes funding more expensive. so this is not good.. yields need to stabilise or they WILL come crashing down again as demand for Fed's debt auctions will be akin to a ghost town.

It has nothing to do with QE2.