The Journal reports that the Fed will not add to its purchases of US Treasuries and may slow the remaining purchases over a longer period. Quantitative Ease has unnerved many, not least the People’s Bank of China, and the Fed has heard the message load and clear. Fortunately the economy is stabilizing, so they can afford to be less aggressive anyway.
US yields are lower despite the news, a signal that the market is happy that the Fed will be less of a factor in that market going forward. The dollar is firmer as well. Stops below 1.3990 just tripped off and EUR/USD now trades at 1.3977. 1.3940 and 1.3915 are support on dips.