10 and 30 Year Treasury Yields Jump Higher

Whats going on here? We thought the Federal Reserve Bank was buying U.S. Treasuries as part of their quantitative easing program. Well, they are buying U.S. Treasuries on the short end and are leaving the long maturity bonds such as the 10 and 30 year Treasury notes alone. Since the Federal Reserve Bank announced their QE-2 plan yields have soared higher on the 10 and 30 yield Treasury bonds. This morning the yield on the 30 year Treasury is around 4.32%. This is the highest the yield has been on this note since May 2010. The near term resistance target on the 30 year T-Bond interest rate looks to be around the 4.40% level. Today the 10 year Treasury bond interest rate is also trading higher by over 10 basis points to 2.86%. The next important resistance area for the 10 year Treasury note interest rate will be around the 3.00% area. However, the yields on the 10 year note are already a little bit extended on the daily charts. When the yields increase higher traders can look to trade the ProShares UltraShort 20+ Year Treasury ETFTBT, or the ProShares Short 20+ Year Treasury ETFTBF. If traders believe that the yields will decline and bond prices will trade higher then the iShares Barclays 20+ Yr Treasury Bond ETFTLT.