Fed’s Bullard: No big difference between Fed buying Agencies and Treasuries

Now that the government is explicitly backing the debt of Freddie and Fannie, there is no real difference between the Fed buying agency paper and long-term Treasuries, the Fed’s Bullard says. The Fed may see how other programs work through the spring before buying long-term Treasuries, a comment that may disappoint bond bulls. Now would be a good time to set an inflation target, Bullard repeats.

EUR/JPY short-covering is spilling over to EUR/USD at the moment, lifting the pair back above 1.2600. Stops lie above the 1.2640 level.