QE2 Slaughters Long-Term Treasury ETFs

As the U.S. economy continues to struggle despite record low interest rates and strong growth in emerging markets, Ben Bernanke and the rest of the Fed team have been forced to get more creative in their attempts to stimulate job creation and sustainable economic expansion. With interest rates already near record lows, the Fed took a widely-anticipate step on Wednesday, moving to engage in another round of quantitative easing–better known as QE2. In this latest round of market stimulus, the Fed announced that it would be buying up close to $600 billion in Treasury bonds in an effort to send yields lower and spur greater levels of demand for borrowing and lending activities. While these tactics have had a questionable history, Bernanks and company seem optimistic that a round of bond buying will give the economy the jolt it needs to get back on track [also read Embrace QE With These [...] Click here to read the original article on ETFdb.com. Related Stories: Market Turmoil Boosts Long-Term Government Bond ETFs What’s Gotten Into Treasury ETFs? Tuesday’s ETF To Watch: Long-Term Treasury Bond ETF (TLT)