The Federal Open Market Committee released a statement Wednesday confirming expectations that it would extend its “Operation Twist” program as well as continue reinvestment of principal payments in its agency MBS and debt holdings, prolonging downward pressure on long-term rates.

Operation Twist, which involves sales or redemptions of shorter-term securities and investments in an equal amount of longer-term securities, was slated to end this month. But the Fed instead has chosen to continue it through yearend.

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