I found this info first at Reuters today. The New York Fed is re-investing $32 billion of principal from agency debt and agency MBS into Treasuries with various maturities and TIPS (Treasury Inflation Protected Securities). Below is a snapshot of the actual schedule from Newyorkfed.org. I'm watching the Treasury ETFs for any confirmed reversals here, specifically IEF (7-10yr Treasuries) and TLT (20+). TLT pierced the ascending channel, pierced floor support at the 7/1 high and is under the 50 day moving average. TIP is making new highs. Are the bond vigilantes testing market missiles? After the jump is the Treasury Operation Schedule and 2 year TLT chart. There are two potential scenarios for Treasuries: 1) they follow JGB yields lower on continued stimulus/deflation; 2) yields breakout on recovery/inflation (see the Faber and Soros links below).
TLT (iShares Barclays 20+ Year Treasury Bond Fund) - FreeStockCharts.com
Recent posts of interest:
Marc Faber thinks interest rates will begin to rise in the next 3 months and says sell bonds (link, 10/13)
Soros thinks Treasury yields could follow Japanese Government Bond Yields lower (sans RMB appreciation (link, 10/9)