Fed moves to stimulate economy, $200,000,000,000!

The Federal Reserve announced today that they will expand their securities lending.  The move they have decided to make basically upgrades mortgage backed securtities.  Through the Term Securities Lending Facility the FED loan up to $200 billion worth of Treasury Bonds for terms of 28 days when they are secured with select Mortgage Backed Securities.  The FED had only lent overnight up to now.  This is a good move for the economy and in the long term a good move for bonds.  The security this gives the market has pushed the down up +200 points.  The FNMA 30 Year Bond market is trading lower on the day. 

The Fed also has approved reciprocal currency arrangements with the European Central Bank [up to $30,000,000,000] and the Swiss National Bank [up to $2,000,000,000].