Norcini

Trader Dan's Market Views

The Fed announced $400 billion worth of purchases of longer dated Treasury debt. One would think that hte markets would be pleased but alas, 'twas not meant to be. What stuck in their craw was the fact that these purchases were sterilized and not fresh purchases. In other words, there would be no increase in the Fed's balance sheet but rather a rolling from their current holdings of shorter-dated maturities into longer dated ones. Apparently the markets were not impressed and were looking for either: 1.) a larger sum than $400 billion 2.) non-sterilized purchases (another dose of QE) or 3.) some combination of the above This is a rather sad commentary on the current state of our nation where a sum as enormous as $400 billion dollars is met with a gigantic yawn followed by an upchuck.

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