ML-Implode News - Interest Rates Play Havoc with Banks, Bonds and Borrowers

``You can blame Fed Chair Ben Bernanke for even suggesting that the Fed may... could... has considered... or might consider... eventually... some day... the "tapering" off of quantitative easing, causing the yield on 10 year U.S. Treasuries to jump up a few weeks ago. That is to say, you can blame Bernanke, but why bother. After all, the man has pretty much single-handedly kept interest rates artificially low far longer than anyone could have expected.
I mean... QE-1 was expected... QE-2... well, okay... but QE-3's pumping of $80 billion a month into the financial markets indefinitely? Come on now... not even the most bullish of the bulls saw that coming.

Within hours of Ben's recent comments, the Fed was tapering off on any talk of tapering in an effort to soothe the savage beasts of the bond market who were fast becoming bearish. Of course, rising interest rates have to be expected... eventually. Back in 2000, the yield on the 10-year Treasury was roughly six percent. A decade before that the yield on these same bonds was almost nine percent.''

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Interest Rates Play Havoc with Banks, Bonds and Borrowers