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View Diary: BREAKING: Fed Launches $40-Billion-a-Month QE3 Stimulus (129 comments)

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  •  There's no logjam. (1+ / 0-)
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    marianevans

    The effect so far has been that Treasuries are down a bit and mortgages are up a bit. Thus, mortgage yields declined (about 5bp or 0.05%) while 10y T-Note yields rose (by about 2bp). Since loan growth at banks has been slow, banks have been buying MBS anyhow. Unless you think that a few bp is going to make a big difference, I don't see any logjam being loosened appreciably here.

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