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Tsy Curve Slightly Flatter As New QE Guidance Eyed

FED

Much of the minutes (see 1410ET bullet) tell us what we've heard from FOMC members already; seems like there is broad consensus over the options though not yet conclusive over which option to take.

  • On balance though the "fairly soon" language on enhancing QE guidance suggest an outcome-based linking of buys to economic outcomes is on the cards soon ("most" favored linking them) could come as soon as the Dec or Jan FOMCs.
  • Earlier steepening of the Tsy curve has reversed.

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