12 As shown in figure 4, longer-term Treasury yields have risen substantially over the past couple of months since the FOMC initiated this round of asset purchases.
I believe that this increase in Treasury yields likely reflects a number of significant factors, including incoming information suggesting a somewhat stronger economic outlook and the fiscal package that was announced by President Obama in early December and approved by the Congress about two weeks later; that package will not only support economic growth next year but will also increase the amount of federal debt issuance.