- The FOMC minutes were more hawkish than expected, with expectation now that QE will be conducted over a shorter time-frame. Treasuries are seen under-pressure due to the expectation of less treasury buys, USD is strengthening as the prospect of a reduction in the expected amount to be printed supports price-action, and gold is seeing selling pressure as inflationary pressure subsides.
- Following the December meeting expectation was that large scale asset buys under the newly expanded QE program would be conducted for several years as a considerable amount of time is needed for labour market improvement.