Today's high rate at the first 3-year Treasury Auction since the end of the QE2 resulted in the LOWEST 3-year note yields since before the start of the Fed's QE2 back in mid November 2010. Below is a Table of the dates of all of the 3-year auctions for the subject time period and the high rates for that date.
3-year Auction Date: Rate:
QE2 ENDS 6/30/2011
So the empirical data suggests that the Fed's QE2 operation raised the risk free interest rate for the 3-year point of the term structure. This is the opposite of what we are typically led to believe concerning the Fed's QE2 project, that is, that this Fed program lowered interest rates out the term structure. The data says otherwise.
Maybe businesses and households can now enjoy lower financing costs now that the Fed has finally exited the Treasury market.