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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: Crimson Ghost who wrote (11576)12/7/2001 7:41:12 PM
From: ajtj99  Read Replies (1) of 99280
 
George, are the bond traders dumping in response to the Fed redemptions, or is it rotation into equities?

It is a bit surprising that the Fed redeemed again today even though they had the employment numbers last night. Are they sending some mixed signals?

I don't recall the Fed moving like this the Friday prior to previous rate cuts, but I haven't been paying that close attention. I thought normally the Fed Funds rate pretty accurately reflects what's coming, within a 30-40% error rate. If 1.875 is too low, how can we get a 25BP cut on Tuesday?
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