As we anxiously await the Fed's imminent decision, the bond market fluctuates, and the 10-year note is yielding 2.89 percent (Rick Santelli's line in the sand).
Sunday's bombshell announcement that Larry Summers was no longer seeking the Federal Reserve chairmanship candidacy launched investors back into Treasurys. On Monday, we experienced one of the most precipitous drops in Treasury yields thus far in 2013, as the market believes that the QE program will not be wrapped up as quickly without Summers at the helm.
This move—which was nicknamed the "Summers slam" in the bond pits in Chicago—certainly caught some shorts in the bond market.
Janet Yellen, the vice chairwoman of the Fed Board of Governors, is now the most likely nominee. And when Ben Bernanke steps down, a Yellen appointment will probably make for a much smoother passing of the baton.
So counterintuitively, Bernanke is now in the position to taper a bit more rather than less, because the QE program will probably be around a bit longer under Yellen's leadership, compared with under Summers'.
(Read more: Whatever the Fed does, gold will rally: Schiff)