Notice the phase shift between the QE program and interest rates. They seem opposite. The monopoly arrangement of the bond dealers cause the problem.
The bond market is composed of small and large groups, the big guys are first to trade in large volume. So they front run the announcements, pick up nickels in front of Ben. They make consistent money, the first to sell in a QE and the first to buy back in after it terminates. This is what Mish calls first access, riding the waves. The Fed is between Treasury and its supply and the big players that deal in volume. Think of it as social security for the wealthy, paid by the middle class. Go see Immanuel Saez, he knows the score.
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