tomorrow's payroll numbers have been revised down to 180K. Today's data suggest that number should get blown out of the water. Basically, housing and economic data are better now than before the Financial Crisis/Great Recession. They have lost control of the Long Bonds...they may actually have to do more than tapper. Bernanke first suggested Tapering in June and then turned tail in September. Most likely a Budget Deal will be finalized before the Fed Meets. One could argue for abrupt tapering and certainly stop buying
mortgage backed securities.