Stocks Tumble After Fed Announces It Will Reduce Treasury QE From $75BN to $60BN Per Day

After desperately trying to ramp to green, stocks are tumbling (along with bond yields) right after the Fed implicitly confirmed there is now a shortage of bonds as demonstrated by the recent repo ops that saw zero submissions - as discussed earlier as instead of using repo to park bonds with the Fed Dealers merely sell them back to the Fed - ... 

... when it announced it would start cutting back, or tapering, its "unlimited QE" bond-buying next week.

Specifically, after buying $75BN in bonds daily through Wednesday - as it has since March 19 - the Fed said it would reduce the amount to $60BN on April 2 and 3, with the assumption that this - or lower - is the number going forward.

But wait there's more, because after buying $50BN in MBS every day since Monday, the Fed's schedule now also shows a decline in MBS purchases going forward from $50BN to $40BN daily next week.

These cuts are summarized below:

Stocks are unhappy...

And bonds are bid with 10Y tumbling to 67bps...