NEW YORK ( TheStreet) -- There were rumblings in July and August that the Federal Reserve would try to jump start the U.S. economy. By September, the notion that the Fed would embark on a second round of "quantitative easing" became a foregone conclusion. By October, the main questions were, "How much treasury debt will you buy?" and" "How long's it going to take?"
Some wondered whether the Fed would be purchasing short, medium or long-term treasury debt, but that wasn't difficult to surmise. In "
Flash forward to yesterday's FOMC meeting. Over the next eight months, the Fed intends to purchase $600 billion in treasury debt with an average duration of 6 years.
So the Street received exactly what it had anticipated. And yet... here's the amazing part. Investors who recently piled into longer-term treasury bond debt were actually surprised by their bonds getting crushed.
A few days earlier, I talked about the possibility of using
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