S&P, Treasury Yields Rising In Tandem, 30-Year Yield Testing Descending Channel Resistance

Since August 2010, the S&P and 30y Treasury yield have been rising in tandem. TNX was a little late to the party. QE2 (Federal Reserve buying Treasuries) was the catalyst for higher yields and equities. So the goal was to get everyone to sell their bonds and buy equities? Although borrowing costs are now higher, at least household net worth is up from the equity rally.

The second chart is of the 30-Year Treasury Yield Index (TYX). It is bumping up against resistance in a descending channel that goes back 25 years. Watch the Yield/SPX relationship going forward. I also threw up a snapshot of the Fed's Treasury buying schedule from January 24 to February 10, 2011. Good day.

S&P, TYX, TNX (Freestockcharts.com)

TYX (30y Treasury Bond)