Spiking Yields Won't Deter Fed's Strategy By Marc Chandler About this article: U.S. Treasury yields are surging. The 10-year note yield is now up 27 basis points on the session at 3.72%. Several factors are weighing on U.S. yields today -- the ISM report, coupled with the better readings in Europe and China, keeps the "green shoots" story intact. Various measures of the tensions in the financial markets have eased. There are anecdotal reports of portfolio shifts from fixed income to equities. There are of course also concerns about supply. Back at the March FOMC meeting, the Federal Reserve decided to purchase $300 billion of Treasuries in the following six months. To date it has purchased a little less than half this amount. It has indicated it will buy seven- to 10-year maturities on Wednesday and two- to three-year maturities on Thursday. Next week it will make two purchases, four to seven years and 10 to 17 years.... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200.

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