Intraday Market Thoughts

Why Fed Must Taper Treasuries & not MBS?

by Ashraf Laidi
Aug 22, 2013 12:05

Everyone is discussing the tapering—whether it will be announced and implemented in September, or announced in September and implemented later in the year. But not much light has been shed over the composition of the tapering i.e. how much of the reduction will reduce the $45 bn in monthly purchases of long term treasuries and how much of it will trim the $40 bn in monthly purchases of agency mortgage-backed securities. More charts & analysis on why & how

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Why Fed Must Taper Treasuries & not MBS? - Refinancing Reits Aug 21 (Chart 1)

 
 

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