Completion of QE2, what's next for the $

[MarkedFeed]

The fed will completes QE2 at the end of June and is banking on the returns from toxic mortgages purchased to help support the economy. There has been an unexpected slowdown of job growth coupled with a double dip in their housing market is likely going to impact repayment of mortgages or sales of houses to repay mortgage debt. This week we have seen $ buying and yields of the 10yr note broke 2.94 only to return to what seems to be a developing base. We could be about to see a short term $ rebound although it doesn't appear to have strong underpinning support.


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