Forex Flash: Twist Replacement Eyed - UBS (Barcelona) - Markets were already steady despite some geopolitical concerns over the Koreas comments Geoffrey Yu and Gareth Barry of UBS.

Equity markets in Asia were largely flat as investors look ahead to the FOMC decisions later today, where a replacement for Operation Twist is expected from the Fed. They notes that they are looking for a new outright asset purchase programme in long-dated Treasuries of around $40-45bln a month. Additionally they note that Chairman Bernanke will host a press conference where the market will look for indications of policy evolution. Elsewhere, the Eurozone continues to offer sour notes. Greece´s debt buyback fell EUR2.6bln short of its target and the Eurogroup will need to meet today to decide how to make up for the shortfall, lest the IMF be further antagonised.