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The yield on the 30-year bond and the price of the S&P 500 both peaked in September on the day of announcement of the QE3 program (see injection gamble here). Yesterday the government came to an agreement to avert the “Fiscal Cliff” and the yield on the 30-year and S&P 500 found themselves back at the QE3 highs again.
Are outside influences impacting the markets? Whether they are or not, how the markets handle line (3) above should tell us a good deal about where yields and 500 index will be a few months from now!