Interest Rate Puzzle -- Paul Craig Roberts and Dave Kranzler - PaulCraigRoberts.org
The puzzle is: why did a mere mention of tapering send interest rates up while actual tapering sent them down?
Perhaps the answer is that QE did not stimulate the economy and that realization of this fact among more savvy investors is resulting in money moving out of the more risky stocks into the relatively safety of Treasuries.
The question that needs to be asked is, what will the Fed do if 2nd quarter GDP is also negative? As QE did not revive the economy, if the economy heads into an official recession, what policies will the Fed implement in an attempt to revive the economy?