Salient to Investors:

Jason Rogan at Guggenheim Partners said the market was completely caught off guard by Bernanke, who clearly does not think the economy is ready for the Fed to pull back, and that means stronger Treasuries.

Futures investors see a 43 percent chance that the Fed will increase fed funds target to 0.5 percent or more by January 2015, down from 68 percent 2 weeks ago.

James Bullard at FRB of St. Louis said weaker data came in and the FOMC decided to wait, and since inflation is low, we can afford to be patient. Bullard said markets shouldn’t have been surprised the FOMC have repeatedly said the decision to taper would be data dependent.

The Treasury’s sale of 10-yr TIPS on Sept. 19 attracted the least demand since 2009.

Jim Bianco at Bianco Research said Wall Street made the big mistake of taking silence from the Fed as approval of tapering, when instead the silence was a lack of consensus among policy makers.

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