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Strategies & Market Trends : Drillbits & Bottlerockets

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To: Rich1 who wrote (10291)5/8/2001 4:12:14 PM
From: John Pitera  Read Replies (1) of 15481
 
Looks like the USM1's closed right on their 21 dma today.I
would not be concerned if the bond contract went down to
101 '12

Big swing across the coupon curve today as price gains at the short end contrast to declines at the long end. The 2/30 spread has widened 5.5 bp through the day as the 2-year has fallen 2.5 bp and the bond yield has added 3 bp. Bill rates have fallen off as well given increasing expectations for a 50 bp ease at next week's FOMC meeting. The May funds futures contract now prices in 82% odds for a 50 bp ease given the assumption of 25 bp.
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