Barclay's says $500-$600B worth of Fed bond purchases is already priced into the market,...

|By:, SA News Editor

Barclay's says $500-$600B worth of Fed bond purchases is already priced into the market, reasoning a 2% yield on the 10 year only makes sense if one expects the economy to shrink 2% or that QE3 is coming. Jeff Gundlach, who has been right as rain on the subject, would disagree - believing QE is bearish for bond prices.