The market seemed to have it in their mind that the Fed had already changed their mind, that there was a change in policy to a more aggressive pace (of rate tightening), but that did not occur.
Sadakichi Robbins
It's pretty much expected due to the extraordinary situation. Their biggest concern is making sure there's ample liquidity, especially as the equity markets open. The bond market had been expecting it.
market extraordinary equity open concern pretty bond situation
We're probably raising the endpoint for the Fed's easing target from 1.5 percent to at best 1.75 percent.
We are still kind of stuck in this 4.67-4.77 percent range and I guess the reversal in oil is what kind of took a chunk out of equities and resumed a modest bid in bonds.
kind oil bonds
It was an extremely ugly auction. And that's something nobody wants to see, not the Street and certainly not Treasury, given the amount of borrowing they have to do.
ugly
The real surprise is that none of the usual indirect bidders turned up. Maybe they were scared away by the jump in direct bidding (Wednesday).
real surprise scared
It's a good sign, but it's not the driving force in the market.
force good market driving sign
The view that the Fed can take a measured approach is supported by the Greenspan testimony today -- he reiterated that the measured approach is really the right medicine here.
today medicine testimony view
change mind market
The market has every reason to be nervous.
reason market
The market tried so hard to break 3.90 (percent), but the Europeans threw in a curve ball.
break market hard
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