The poll canvassing 18 of the 21 primary dealers
- those banks who are permitted to deal securities directly with
the Fed — found that eight of them expect the first so-called
tapering of bond purchases to begin in March.
Another five call for the tapering to start in January, while
four others pointed either to December or felt it could happen
in either December or January. One bank estimates it will happen
at some point in the first quarter of 2014.
Friday's poll results, which followed a stronger-than-expected
reading of the U.S. job market in November, with the
unemployment rate falling to a five-year low, slightly moved
forward the anticipated time frame for the first tapering by the
Fed. In the November poll, two of the 16 dealers surveyed did
not see the wind down beginning until April 2014.
The Fed has been buying $85 billion a month of long-term
Treasuries and mortgage-backed securities in a bid to hold down
interest rates and accelerate what has been a sluggish economic
recovery from the Great Recession.
(Reporting by Ellen Freilich,
Ryan Vlastelica, Julia Edwards, Luciana Lopez; editing by Chizu
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