VIEW: Ahead of the release of the Fed's.....>

US TSYS: VIEW: Ahead of the release of the Fed's weekly Tsy purchase

announcement J.P.Morgan note that "our broader set of market functioning

statistics have remained relatively stable this week. RMSE declined modestly and

along with 10-year market depth and price impact, it is within one standard

deviation of its one year average. As we stated last week, the current pace of

$4.5bn/day aligns with the pace of prior QE programs and with dealer

expectations, and the pace of MBS purchases has already stabilized. We think

purchases are likely to continue at a pace of $80-100bn/month moving forward;

thus we think the Fed is likely to keep the pace of purchases unchanged at

$4.5bn/day, with a risk that purchases are tapered down to $4bn/day."