19 Jun 2014
Tapering as usual - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank noted the activity around the FOMC today.
Key Quotes:
“As expected, the FOMC tapered its asset purchase program by another $10bn, evenly split between US treasuries and agency MBS. This will reduce the purchases of treasuries in July to $20bn (from $25bn) and the purchases of agency MBS to $15bn (from $20bn). This will bring the total monthly amount of asset purchases down to $35bn, from $45bn”.
“However, tapering is no longer a major market mover and unless there is a major change to the economic outlook, the pace of tapering is expected to remain $10bn/meeting. Instead, attention has shifted to the hiking cycle”.
Key Quotes:
“As expected, the FOMC tapered its asset purchase program by another $10bn, evenly split between US treasuries and agency MBS. This will reduce the purchases of treasuries in July to $20bn (from $25bn) and the purchases of agency MBS to $15bn (from $20bn). This will bring the total monthly amount of asset purchases down to $35bn, from $45bn”.
“However, tapering is no longer a major market mover and unless there is a major change to the economic outlook, the pace of tapering is expected to remain $10bn/meeting. Instead, attention has shifted to the hiking cycle”.