Post-crisis monetary policy and the bond market

The relationship between monetary policy and bond yields has not followed patterns expected by many analysts. Here are the 10-year constant maturity yields compared with the Fed policy actions over the post-crisis period. QE buying generally lead to higher yields except for the Operation Twist period. The tapering period of reduced Treasury purchases produced a market rally. The market yields have been higher on expectations of Fed action since the lows in the first quarter, but the current patterns does not seem to be producing a definitive trend.