NY Fed markets chief: No sign yet Fed needs to change balance sheet plans

<ul><li>Unclear when reserves will grow scarce</li><li>All signs suggest reserves remain abundant</li><li>Money markets will signal when reserves are growing scarce</li><li>Fed can still do repos to add liquidity if needed</li><li>Standing repo, conventional repos can address stress quickly</li><li>Fed rate control tools working well amid recent challenges</li></ul><p>The word 'yet' is doing a lot of work in that headline. It's remarkable how quickly the talk shifts to QE when there is stress in the market.</p><p>As for bonds, US 10-year yields are down 8.3 bps today to 4.70% after falling as low as 4.624%.</p>

This article was written by Adam Button at www.forexlive.com.