Summary Box: Fed launches $600B bond program
Wednesday, November 3, 2010; 6:31 PM
-- FINALLY: The Federal Reserve announced its long-awaited plan to buy $600 billlion in Treasurys to push interest rates lower. The hope is that it ultimately lowers the unemployment rate.
MORE DETAILS: The Fed will buy $75 billion in Treasurys a month until next June. Investors had expected a package in the range of $500 billion over six months.
MARKET REACTION: Treasurys rose, with the exception of the 30-year bond, because the Fed's program mainly targets bonds maturing in the next two to ten years. The price of the 30-year bond plunged $2.00, and its yield jumped to 4.08 percent.