The following chart is of the 10 year Treasury Note Yield..
Ben ‘wants’ to keep the yields low if he wants to keep mortgage rates low. A continued rise in the 10 year yield would make it much harder to keep interest rates low for homeowners.
If the 10 year yield breaks above 3.25% it would probably be the time when the FEDS will step in and buy their own notes to control prices/yields, as they have threatened to do for the past six months.
This should be what keeps Bernanke ‘up at night’.
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