As reported on their Myspace Blog :

Yellow Swans June 2001-June 2008

Just wanted to drop on here that the rumors and random blog posts about YS breaking up are true.

we are completing all of our previous comittments, including all of the shows on our calender here..  so..  those are all on…

there’s been no drama in the band or anything weird..  just time for two dudes to move on..

we are working on a few last releases so…  hopefully there will at least be a studio album released in 2009, and there are a few other comittments that we will be completing after the band is over..

we owe thanks to a hell of a lot of people and we’re appreciative of all folks have done for us over the years..