Archived IMT (2010.03.23)

LATEST FED SPEAK Although the accommodative stance language can be expected to stay in the upcoming FOMC statements, traders are increasingly aware that such language is used as an offset for upcoming hawkish developments such as: i) the termination of the MBS purchases next week; (ii) start of some reverse repos operations (draining liquidity); and (iii) the looming increase in the discount rate. Bear in mind that the Atlanta Feds Lockhart (said last night that extended period phrase must stay) is not a voter at this years FOMC.