As usual, Bernanke has kept option open to further easing (QE3) should the situation so requires it.Apparently markets were having no major impact of Bernanke's extended " Operation Twist " dollar was almost same at closing time and stocks closed bit lower.
What is "Operation Twist "?
What is "Operation Twist "?
1. The Fed already owns more than $1 trillion in bonds, purchased over the past few years in an effort to bring down medium- and long-term interest rates.
2. A lot of those bonds — hundreds of billions of dollars worth — are medium-term bonds, which come due in the next few years.
3. Interest rates on medium-term government bonds are already near zero.
4. The Fed may sell some of those medium-term bonds, and use the proceeds to buy longer-term bonds — such as 10-year
Major focus of market will be on GERMANY,SPAIN, FRANCE,ITALY meet on 22nd of june.
As Spain and Italy heading for full bailout .
Today's important economic data,- UK retail sales (MoM,YoY )
- US initial jobless claims
- US manufacturing PMI
- US existing home sales
- US leading indicator
- US philadelphia manufacturing survey
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