FED DOMINATOR

JANET YELLEN
The Fed RAISED rates from 6/30/2004 to 6/29/2006
And then LOWERED rates from 6/29/06 to 12/16/08
This chart shows the interest rates for each ‘duration.’

example: 9/20/05 -- the fed lowered rates to 3.75.

you can see what each bond did: 1yr rate was 3.92%, And
10yr rate was 4.26%.
FOMC's Target
Date 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr Increase Federal Funds Rate
6/30/04 1.17 1.33 1.68 2.09 2.70 3.16 3.81 4.24 4.62 5.33 na 25 1.25
8/10/04 1.42 1.50 1.75 2.01 2.55 2.94 3.52 3.94 4.32 5.08 na 25 1.5
9/21/04 1.62 1.72 1.93 2.12 2.49 2.79 3.28 3.66 4.05 4.82 na 25 1.75
11/10/04 1.88 2.08 2.29 2.47 2.82 3.07 3.56 3.89 4.25 4.97 na 25 2
12/14/04 2.01 2.21 2.48 2.65 2.99 3.17 3.53 3.83 4.14 4.79 na 25 2.25
2/2/05 2.22 2.51 2.76 2.95 3.32 3.47 3.73 3.93 4.15 4.63 na 25 2.5
3/22/05 2.77 2.89 3.17 3.40 3.86 4.06 4.31 4.45 4.63 5.01 na 25 2.75
5/3/05 2.65 2.91 3.19 3.35 3.68 3.73 3.90 4.03 4.21 4.60 na 25 3
6/30/05 2.99 3.13 3.34 3.45 3.66 3.67 3.72 3.80 3.94 4.28 na 25 3.25
8/9/05 3.37 3.52 3.79 3.90 4.13 4.19 4.25 4.31 4.41 4.66 na 25 3.5
9/20/05 3.29 3.61 3.89 3.92 4.00 4.01 4.06 4.14 4.26 4.59 na 25 3.75
11/1/05 3.78 3.96 4.25 4.31 4.42 4.44 4.47 4.51 4.58 4.85 na 25 4
12/13/05 3.61 3.91 4.34 4.37 4.43 4.43 4.44 4.47 4.54 4.81 na 25 4.25
1/31/06 4.37 4.47 4.59 4.58 4.54 4.49 4.47 4.49 4.53 4.74 na 25 4.5
3/28/06 4.71 4.65 4.83 4.82 4.81 4.79 4.79 4.79 4.79 4.98 na 25 4.75
5/10/06 4.69 4.88 5.03 5.02 5.01 5.00 5.03 5.06 5.13 5.34 na 25 5
6/29/06 4.68 5.01 5.26 5.25 5.21 5.19 5.17 5.18 5.22 5.39 na 25 5.25
9/18/07 3.87 4.01 4.12 4.08 4 4.04 4.19 4.32 4.5 4.81 4.77 50 4.75
10/31/07 4.01 3.94 4.09 4.04 3.94 3.94 4.16 4.29 4.48 4.79 4.74 25 4.5
12/11/07 2.89 2.94 3.17 3.09 2.94 2.99 3.32 3.59 3.98 4.51 4.47 25 4.25
1/22/08 2.15 2.35 2.41 2.29 2.08 2.12 2.64 3.01 3.52 4.23 4.23 75 3.5
1/30/08 1.93 2.21 2.29 2.3 2.3 2.44 2.96 3.32 3.78 4.45 4.44 50 3
3/18/08 0.71 0.92 1.32 1.4 1.58 1.74 2.42 2.88 3.48 4.3 4.35 75 2.25
4/30/08 1.17 1.43 1.64 1.85 2.29 2.49 3.03 3.34 3.77 4.49 4.49 25 2
10/8/08 0.23 0.68 1.07 1.28 1.65 1.88 2.7 3.15 3.72 4.31 4.09 50 1.5
10/29/08 0.41 0.62 1.1 1.41 1.58 1.79 2.77 3.24 3.93 4.59 4.26 50 1
12/16/08 0.05 0.04 0.23 0.45 0.65 0.88 1.34 1.77 2.37 3.16 2.86 75 0.25
The FOllowing pages show when the fed lowered Rates from
9/18/07 to 12/16/08 and raised rates from 6/30/04 to 6/29/06.
These charts show what each separate bond did
during the rate lowering, and the rate hikes.
The BLUE line shows the fed rate moves and the
orange line show the corresponding bonds reaction.

FED LOW ER: 2 Y EA R

6

5 4.75
4.5
4.25

4
4.00 3.94 3.5

3
3
2.94
2.25

2 2.29
2 2.30
2.08
1.65
1.58
1.58 1.5
1
1 0.65

0.25
0
9/1/07 10/1/07 11/1/07 12/1/07 1/1/08 2/1/08 3/1/08 4/1/08 5/1/08 6/1/08 7/1/08 8/1/08 9/1/08 10/1/08 11/1/08 12/1/08

2 year FOMC's Target Federal Funds Rate

Fed R a i s e: 2 Y ea r
6.0

5.5 5.21
5.01
5.0 4.81
4.54 5.25
4.42 4.43 5
4.5 4.13 4.75
4.00
3.86 4.5
4.0 3.68 3.66 4.25
3.32 4
3.5 3.75
2.99
2.82 3.5
3.0 2.70 3.25
2.55 2.49
3
2.5 2.75
2.5
2.0 2.25
2
1.5 1.75
1.5
1.0 1.25
0.5

0.0

2 yr FOMC's Target Federal Funds Rate

 Fed Low er: 3 Y ea r
6

5 4.75
4.5
4.25

4
4.04
3.94 3.5

3
3
2.99

2.25
2.49
2.44 2
2 2.12 1.88
1.79
1.74 1.5

1 1

0.88

0.25

3 year FOMC's Target Federal Funds Rate

Fed R a i s e: 3 Y ea r
6.0

5.5 5.19
5.00
5.0 4.79
5.25
4.44 4.43 4.49 5
4.5 4.19 4.75
4.06 4.01 4.5
4.0 3.73 3.67 4.25
3.47 4
3.5 3.16 3.17 3.75
3.07
2.94 3.5
3.0 2.79
3.25
3
2.5 2.75
2.5
2.0 2.25
2
1.5 1.75
1.5
1.0 1.25
0.5

3 yr FOMC's Target Federal Funds Rate

 Fed Low er: 5 Y ea r
6

5 4.75
4.5
4.25

4 4.19 4.16
3.5

3.32 3
3
3.03
2.96 2.42
2.64 2.77
2.25 2.7
2
2

1.5

1 1.34
1

0.25

5 year FOMC's Target Federal Funds Rate

Fed R a i s e: 5 Y ea r
6.0

5.5 5.17
5.03
5.0 4.79
5.25
4.47 4.44 4.47 5
4.5 4.31 4.25
4.06 4.75
3.81 3.90 4.5
4.0 3.73 3.72 4.25
3.52 3.56 3.53
4
3.5 3.28
3.75
3.5
3.0 3.25
3
2.5 2.75
2.5
2.0 2.25
2
1.5 1.75
1.5
1.0 1.25
0.5

5 yr FOMC's Target Federal Funds Rate

 Fed Low er: 7 Y ea r
6

5 4.75
4.5
4.25

4 4.32 4.29

3.5
3.59 3.32

3 3.34
3.01 3.24
3 2.88
3.15
2.25
2
2
1.5 1.77

1
1

0.25
0

7 year FOMC's Target Federal Funds Rate

Fed R a i s e: 7 Y ea r
6.0

5.5 5.18
5.06
5.0 4.79
4.51 5.25
4.45 4.47 4.49
4.31 5
4.5 4.24 4.14
4.03 4.75
3.94 3.89 3.83 3.93 4.5
4.0 3.80
3.66 4.25
4
3.5 3.75
3.5
3.0 3.25
3
2.5 2.75
2.5
2.0 2.25
2
1.5 1.75
1.5
1.0 1.25
0.5

7 yr FOMC's Target Federal Funds Rate

 Fed Low er: 1 0 Y ea r
6

5 4.75
4.5
4.25
4.5 4.48
4 3.78 3.93
3.98
3.52 3.77 3.72
3.5 3.48
3 3

2.25
2 2.37
2
1.5

1
1

0.25
0

10 year FOMC's Target Federal Funds Rate

Fed R a i s e: 1 0 Y ea r
6.0

5.5 5.13 5.22

5.0 4.79
4.62 4.63 4.58 4.54 4.53 5.25
4.32 4.41 5
4.5 4.25 4.14 4.15 4.21 4.26
4.05 3.94 4.75
4.0
4.5
4.25
3.5
4
3.75
3.0
3.5
3.25
2.5
3
2.75
2.0
2.5
2.25
1.5
2
1.75
1.0
1.5
1.25
0.5

10 yr FOMC's Target Federal Funds Rate

 Fed Low er: 2 0 Y ea r
6

5
4.81 4.79
4.75 4.51 4.59
4.5 4.45 4.49
4.25 4.23 4.3 4.31
4

3.5
3
3
3.16

2.25
2
2
1.5

1
1

0.25

20 year FOMC's Target Federal Funds Rate

Fed R a i s e: 2 0 Y ea r
6.0

5.33 5.34 5.39

5.5
5.08 5.01 4.98
4.97
4.82 4.79 4.85 4.81
5.0 4.66 4.74 5.25
4.63 4.60 4.59
5
4.5 4.28 4.75
4.5
4.0 4.25
4
3.5 3.75
3.5
3.0 3.25
3
2.5 2.75
2.5
2.0 2.25
2
1.5 1.75
1.5
1.0 1.25

0.5

20 yr FOMC's Target Federal Funds Rate

 Fed Low er: 3 0 Y ea r
6

5 4.77 4.74
4.47
4.75
4.5 4.26
4.44 4.49
4 4.25 4.35
4.23 4.09

3.5
3 3

2.86

2 2.25
2
1.5
1
1

0.25
0

30 year FOMC's Target Federal Funds Rate