(1/2) Based on 29 sell-side analysts'...........>

FED: (1/2) Based on 29 sell-side analysts' previews reviewed by MNI, at least 5

(Barclays, Deutsche, Morgan Stanley, NatWest, and UBS) see the Fed taking some

action at the June FOMC (vs April FOMC when only MS saw any change).

- The boldest prediction is from UBS, who expect the FOMC to announce

strengthened forward guidance, yield curve control (YCC), and an open-ended QE

program. Nobody else expects YCC or a formal date-based/metric-based forward

guidance to be introduced at this meeting, but 5 see the FOMC announcing a

formal QE program (compared to the current setup which involves week-to-week

announcements of purchase quantities, aimed at supporting market functioning).

- The parameters for QE range from $50-100bln in monthly Tsy buys; the broad

expectation appears to be that such a program would be open-ended in nature.

- Most analysts expect the Fed to eventually adopt YCC, mainly as a complement

to strengthened forward guidance. In turn, YCC is expected to target the short

end of the curve, while forward guidance is seen likely to be tied to dual

mandate objectives being reached as opposed to being date-based.

- Summary table here: https://emedia.marketnews.com/anjun20.png