11:33AM Crescenzi: Fed bond purchase rumors in Treasury market by Rachel Koning
Among the factors driving a Treasury rally, and pushing benchmark yields to two-month lows, is speculation the Federal Reserve will purchase Treasury securities in the open market in an effort "to boost reserves in the banking system in order to combat deflation pressures," said Tony Crescenzi, analyst with Miller Tabak. "This rumor, which has circulated in the markets over the past few weeks, was reinforced by the Fed's policy statement wherein the Fed indicated a concern over the potential for a further decline in the inflation rate," he said.
From: http://bigcharts.marketwatch.com a few minutes ago.