Posted by FT Alphaville on Sep 13 22:50. FT markets round-up: "Stocks on Wall Street jumped while the US dollar fell after the US Federal Reserve outlined a series of measures aimed at keeping borrowing costs low to stimulate growth in the world's largest economy. The S&P 500 rallied to close up 1.6 per cent to 1,459 - touching its highest level since late 2007 - as the Fed said it would keep monetary policy stimulative for a considerable time, "at least through mid-2015." That helped push yields on agency mortgage bonds to fresh lows. The yield on 30-year Fannie Mae-guaranteed mortgage debt fell 18 basis points to touch a low of 2.18 per cent. Longer-dated US Treasuries initially sold off, with the yield on the 30-year bond briefly rising above 3 per cent. The 10-year note yield, which was lower before the announcement, initially jumped 5 basis points, but it closed little changed at 1.73 per cent. Ben Bernanke announced a round of open-ended monthly purchases of agency MBS and extended the Fed's language guidance to mid-2015 in an effort to spur the economy. He noted that the Fed's new round of purchases, an additional $45bn a month of new agency MBS buys, would continue until the labour market improved "substantially." "BAE Systems has warned EADS that it will walk away from merger talks unless the combined European champion in aerospace and defence was allowed to operate as a normal company without political interference," reports the FT. Goldman Sachs has chosen to cancel its two-year post-college analyst program, reports the WSJ. Ray Dalio explains his basic framework. IPO lockups are really more of a suggestion. The Anti-Bernanke's early warnings on quantitative easing. Job creation: where are the startups? This entry was posted by FT Alphaville on Thursday, September 13th, 2012 at 22:50 and is filed under Uncategorised.