The Federal Reserve may announce a third round of quantitative easing during their meeting scheduled for later this afternoon. Moreover, the disappointing manufacturing and job reports released last week lead many to believe a QE3 will be announced as early as today.
Treasuries are fairly unchanged after this morning’s GDP report, which showed our economy expanding at a 3.2 percent annual rate as a result of higher consumer spending. The increase was in line with forecasted expectations. Later this morning, the April consumer confidence is expected to show an improvement after last month’s big drop.