Gross:

we were hoping for language pointing to an extended period of time keeping rates low.

But he was pleased that the "downside risks" to growth remaining would provide an environment for the fed to keep rates low for a long time.

Credit conditions have improved and should continue to improve.

El Arian, the fed referred to external demand, exports, etc... which alludes to the fact that the whole world has a problem. In other words, there's an implicit assertion that the global economy must continue to act in concert. This is a positive assumption for domestic inflation and the dollar, and thus, if it can be claimed, slightly positive for MBS.

5.5's and 5.0's have both moved up. It's uncertain as to whether Gross's statements are the cause, but at least, it's an eerie coincidence.

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