"Like most market observers and participants, the buildup to this afternoon’s Fed announcement was palpable. With the release void of an explicit “QE3” or new bond buying program, the Street was left to deal with ramifications of holding rates down until mid-2013.
While, a new bond buying program was not explicitly announced, the implications will be in the form of a “stealth QE3”. What do I mean? This promise has caused (will cause) longer term rates to rally and flatten versus the short end. With the Fed holding billions of MBS securities from prior QE’s, we can expect these same mortgages to refinance..."
at http://pragcap.com/stealth-qe3-is-upon-us
While, a new bond buying program was not explicitly announced, the implications will be in the form of a “stealth QE3”. What do I mean? This promise has caused (will cause) longer term rates to rally and flatten versus the short end. With the Fed holding billions of MBS securities from prior QE’s, we can expect these same mortgages to refinance..."
at http://pragcap.com/stealth-qe3-is-upon-us
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