Salient to Investors:

Kei Katayama at Daiwa SB Investments said QE has led to a bubble in bonds, and at some point, the Fed will have to end the policy.

Economists expect 10-yr rates to climb to 2.26 percent in the US and to 0.73 percent in Japan by Dec. 31 2013.

The median economist expect US GDP expanded at a 3 percent annual rate in Q1 20133.

14 of the 21 primary dealers that trade with the Fed say it won’t start to reduce its bond buying until Q4, 2013, while 12 expect it won’t end until mid-2014 or later.

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