No changes in securities purchases made for disappointment in the financial markets where hopes were high for a dovish FOMC statement. The statement wasn't hawkish either, saying continued monetary stimulus is needed and that the risk of inflation is low. But between the lines, traders say the statement points to less direct buying ahead, buying that last month helped pull long rates to record lows.
Demand for Treasuries eased on the statement, pushing up the 10-year yield by 7 basis points to 3.69 percent. The move in Treasury yields drew funds to the dollar which jumped 0.9 percent on the dollar index to 80.58. The jump in the dollar made for late weakness in commodities including oil which lost about $1 to end at $68.50. Stocks held onto gains with the S&P ending 0.7 percent higher to just under 901. Gold showed little reaction, ending just over $930.