“Federal Reserve Chairman Ben S. Bernanke said the central bank may start dialing down its unprecedented bond-buying program this year and end it entirely in mid-2014 if the economy finally achieves the sustainable growth the Fed has sought since the recession ended in 2009.
“The committee sees downside the risks to the outlook for the economy and the labor market as having diminished since the fall,”
NEW YORK (MarketWatch) — U.S. stocks tumbled Thursday, along with Asian and European equities as well as gold and bonds after the Federal Reserve signaled its bond buying could be scaled back later this year.
Bloomberg:Treasury 10-year note yields climbed to a 22-month high as government bonds tumbled from Australia to Portugal after Federal Reserve Chairman Ben S. Bernanke said policy makers may end bond purchases in mid-2014.
Fxtime: FOMC reaction: The market reacted to the FOMC’s brighter economic projection and therefore likelihood of tapering with USD-strength across the board. This was very apparent in gold and silver XAU/USD (gold in USD) fell sharply after the event risk, breaking below the previous 2013-low of 1321.53 and falling below the 1300 handle.
The telegraph: Stock, bond and commodities markets around the world have slumped this morning as investors take flight at news the Fed's QE3 could end by mid-2014.
Wallstreet journal:The Fed’s stance led to sharp losses for U.S. stocks on Wednesday, while the 10-year Treasury yield 10_YEAR +1.78% soared.
During the darkest days of the financial crisis in 2008, the London Interbank Offered Rate (LIBOR) surged like crazy. The spike in LIBOR caused credit markets to freeze, which prevented even the healthiest companies from accessing the capital markets to finance their ongoing operations. In recent days, SHIBOR — China's version of LIBOR — has been spiking.