“It’s just surprising that so many investors had expectations all over again that we would get an announcement that could indicate QE3,” said Zane Brown, fixed income strategist with Lord Abbett.

Market expectations for more Fed easing—both quantitative easing or an extension of its ‘operation twist’—have seesawed back and forth in the past several weeks. In the beginning of March, markets factored out quantitative easing based on comments from Fed Chairman Ben Bernanke that it might not be needed and that the economy was showing improvement.

At the time, yields rose and stocks also held gains. But some weaker economic reports and new comments from Bernanke last week, defending the Fed’s easing stance, while not new, helped renew expectations for more easing.

The Fed minutes from its March 13 meetingshowed that Fed members continued to discuss using more stimulus if the economy deteriorates, which is not a new stance. It also showed that the recent economic data did not materially change the forecast for 2013, or 2014. They also repeated past concerns about housing and unemployment, as well as discussed recent improvements in employment.

Bernanke last week said the improvement in employment may be the result of companies making up for the overly deep cuts they made during the financial crisis, and the gains may not be sustainable.