MBS Hit All-time Highs Following Fed QE3 Announcement

Here are the Reuters bullets for now, more to follow:

RTRS – FED SAYS WILL PURCHASE ADDITIONAL AGENCY MBS AT A PACE OF $40 BLN A MONTH

RTRS – FED SAYS WILL CONTINUE MBS BUYING, UNDERTAKE ADDITIONAL ASSET PURCHASES, USE OTHER POLICY TOOLS UNTIL LABOR MARKET OUTLOOK IMPROVES SUBSTANTIALLY

RTRS – FED SAYS MBS AND OPERATION TWIST PURCHASES WILL INCREASE HOLDINGS OF LONGER TERM SECURITIES BY ABOUT $85 BLN EACH MONTH THROUGH OF YEAR

RTRS – FED SAYS TO CONTINUE OPERATION TWIST TILL END OF YEAR

RTRS – FED SAYS TO KEEP RATES EXCEPTIONALLY LOW AT LEAST THROUGH MID 2015

RTRS – FED SAYS CONCERNED WITHOUT FURTHER POLICY ACCOMMODATION, GROWTH MAY NOT BE STRONG ENOUGH TO GENERATE SUSTAINED IMPROVEMENT IN LABOR MARKETS

RTRS – FED SAYS THESE ACTIONS SHOULD PUT DOWNWARD PRESSURE ON LONGER-TERM INTEREST RATES, SUPPORT MORTGAGE MARKETS, MAKE FINANCIAL CONDITIONS MORE ACCOMMODATIVE

RTRS – FED SAYS ECONOMIC ACTIVITY HAS CONTINUED TO EXPAND AT A MODERATE PACE IN RECENT MONTHS

RTRS – FED SAYS MAINTAINING ADDITIONAL POLICY OF REINVESTING PRINCIPAL PAYMENTS OF AGENCY DEBT AND AGENCY MBS IN AGENCY MBS

RTRS – FED SAYS KEEPS FED FUNDS BENCHMARK INTEREST RATE TARGET AT ZERO TO 0.25 PCT

RTRS – FED VOTE IN FAVOR OF POLICY WAS 11-1; LACKER DISSENTED, OPPOSING ADDITIONAL ASSET PURCHASES AND DESCRIPTION OF TIME PERIOD FOR LOW INTEREST RATES

RTRS – FED SAYS GROWTH IN EMPLOYMENT HAS BEEN SLOW AND JOBLESS RATE REMAINS ELEVATED; LONGER TERM INFLATION EXPECTATIONS HAVE REMAINED STABLE

Article source: http://www.mortgagenewsdaily.com/mortgage_rates/blog/274570.aspx

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