Fed To Buy $545b Mortgage Bonds In QE3?
I’ll have to update my Quantitative Easing Timeline chart again soon. Mortgage bonds were down about 25 basis points early today (pushing rates up) then rallied back to end up 23 basis points (rates ended down). A big reason: rumors about the Fed doing MBS-focused QE3 on top of their current MBS buying (which isn’t QE). Here’s the Bloomberg story and here’s my take on the rate week ahead, scroll to ‘Bottom Line’ if you’re in a hurry.