A new Bank of America chart shows the Federal Reserve is buying fewer Treasurys and mortgage-backed securities.
"What we have seen is that the Fed has really increased the pace of purchases in mid-March to address market functioning issues both in the Treasury and mortgage markets," the firm's head of US rates strategy told CNBC's "" on Tuesday. "Since the start of April, they've been tapering or reducing that pace of purchase to a rate that's now $10 billion a day in the Treasury market.
"We think that the Fed will announce an intention to modestly slow the pace of purchases to about $7.5 billion a day or about $150 billion a month," he said. "We think they will indicate that they are planning to stick with this amount to support market functioning and also to try to provide stimulus for the economy."
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