Is the Fed's QE2 already high and dry?

The fact that Treasury yields have risen rather than fallen since the Fed announced the launch of QE2 is not necessarily evidence that the policy is failing, especially when the US central bank has not yet even started to buy the additional bonds. However, it does underline our concerns that additional monetary easing may not provide much help to the wider economy and could simply encourage the development of new bubbles, notably in commodities, that ultimately self-destruct.