The Federal Reserve officially announced Operation Twist on September 21 with the stated purpose of lowering longer-term interest rates. The yield on the 10-year note had been below 2.00% 5 of the 9 days prior to the much-rumored announcement, closed at a new low of 1.88% on the day of the announcement and reached the historic closing low of 1.72 the next day, September 22.
What has the 10-year note done since the "Twist" announcement? The interim high daily close was 2.42 on October 27. The interim closing low was the 1.82 on December 19th. Since that time, the 10-year has danced around the 2.00 level with the latest close at 2.04.
Here is a snapshot of selected yields and the 130-year fixed mortgage since the inception of Operation Twist.
Background Perspective on Yields
The first chart shows the daily performance of several Treasuries and the Fed Funds Rate (FFR) since 2007. The source for the yields is the Daily Treasury Yield Curve Rates from the US Department of the Treasury and the New York Fed's website for the FFR.
Here's a closer look at the past year with the 30-year fixed mortgage added to the mix (excluding points). 
Here's a comparison of the yield curve at two points in time: 1) today's close and 2) the daily close on the market's interim high on April 29th. 
The next chart shows the 2- and 10-year yields with the 2-10 spread highlighted in the background. 
The final chart is an overlay of the CBOE Interest Rate 10-Year Treasury Note (TNX) and the S&P 500. 
The final chart shows the percent change for a basket of eight Treasuries since the initiation of the second round of quantitative easing on November 4th, 2010.
For a long-term view of weekly Treasury yields, also focusing on the 10-year, see my Treasury Yields in Perspective.
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Treasuries Update: Operation Twist and the 30-Year Fixed Rate Mortgage
Published 02/10/2012, 12:30 AM
Updated 07/09/2023, 06:31 AM
Treasuries Update: Operation Twist and the 30-Year Fixed Rate Mortgage
Note from dshort: The weekly Freddie Mac update released today shows the 30-year fixed rate mortgage at the historic low of 3.87% for the second consecutive week. The goal of Operation Twist to lower long-term rates appears to have had the desired impact on mortgage rates. The impact on Treasuries is less clear.
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