Driving down medium-term government-bond yields is one of the important objectives of the Federal Reserve's second round of quantitative easing, but that's not what has happened, according to The Economist. The yield on 10-year Treasury bonds is substantially higher than what it was at the beginning of November. The Irish crisis might have been expected to trigger a flight to safety into Treasurys, but that hasn't happened either. "It is a little bit of a mystery. ... But the bottom line is that, so far, QE2 isn't working," according to the magazine.

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