The Fed’s Lockhart, a relative hawk, says he is open to the idea of extending Treasury purchases if warranted. That subject will be discussed at the next FOMC meeting and subsequent meetings, he says. The already announced purchases have had a positive impact on the economy, he says (though many would debate that assertion).
Treasuries are about 10 bp lower on the day at 3.58% in the ten-year maturity amid a broad rally in credit markets today. Looks like with decent earnings reports of late, creditors think they may be paid back, helping debt markets.