Salient to Investors:

Thomas Roth at Mitsubishi UFJ Securities USA said the 3-yr auction won’t be a big deal because of plenty of buyers, and everyone thinks the expiration of the TAG program will cause a wave of inflows. Craig Collins at Bank of Montreal said 3-yr notes are at expensive, historically rich levels.

48 of 49 economists predict the FOMC will increase buying $40 billion in mortgage bonds each month. Michael Leister at Commerzbank said the market expects something from the Fed as the labor market and other measures aren’t seeing a substantial improvement.

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