As shown in the table, the initiation of the securities purchase program at the November FOMC meeting occasioned only minimal market response. The reason is that it was largely anticipated by investors, having been the subject of extensive public discussions by Federal Reserve officials during late summer and early autumn.
Importantly, as expectations of the program gradually became embedded in asset prices during late summer and early autumn, the 10-year TIPS yield dropped nearly 1/2 percentage point over the period between the August and November FOMC meetings; moreover, equity prices rose and corporate bond spreads narrowed.