The release of the December FOMC minutes hint that some members think that slowing or stopping asset purchases under QE3 before the end of 2013 may be warranted; but it’s likely that MBS purchases will continue at the projected pace.

Analysts at Barclays Capital said in Jan. 4, securitization report that the Dec. FOMC minutes indicate a lack of consensus about when asset purchases under QE3 should end. These doubts over the Feds timeline caused lower coupons weaken significantly, said analysts at Barclays Capital in a securitization report last Friday. FN 3s dropped by 6 ticks, while 3.5s lost 5 ticks after the FOMC minutes were released.

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