The Federal Reserve usually releases a more detailed account of its Federal Open Market Committee (FOMC) meetings a month or two after the initial meeting
When the Fed meets for its FOMC meeting, it usually puts out a press release that hits the highlights of the decision and gives a brief economic synopsis. Sometimes the release accompanies a press conference. Analysts will usually compare the current statement with the previous one and try to divine the Fed’s thinking by noting any changes in language. The FOMC minutes of the meeting are much more in-depth and are usually ten to twenty pages long, with graphs and a discussion of both sides of the argument. Instead of simply giving the argument for dissenters, it gives the analyst a feeling for the current discussions. Commercial REITs like Simon Property Group (SPG), Boston Properties (BXP), Kilroy (KRC), Vornado (VNO), and S.L. Green (SLG) are highly interest rate–sensitive, and therefore will parse the minutes to get a read on the economy and the Fed’s intentions.
Bond reaction to the minutes
Bonds (TLT) started the day strong, given the weak housing starts number and the riots in Ukraine. The day began with the ten-year bond yielding 2.68%, and then yields pushed up to 2.73% on the minutes. Given the fact that Janet Yellen just spent six hours in front of Congress discussing monetary policy, there should have been few surprises in the report.
The Committee wanted to communicate commitment to tapering
The FOMC stated: