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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: dpl who wrote (40601)9/1/2005 12:56:31 PM
From: russwinter  Read Replies (3) of 110194
 
If you read my posts I was saying a month ago that the Wizards would try and find some reason or rectification to stop at 3.50%. Now the rationale is easy;

11:19am 09/01/05
Futures markets pare bets for September Fed hike By Rachel Koning
CHICAGO (MarketWatch) -- Interest-rate futures markets at the Chicago Board of Trade show traders aren't as confident for a Federal Reserve interest-rate hike this month as a report showing slower manufacturing growth compounded worries about Hurricane Katrina. The market is priced for a 76% chance the Fed target is lifted to 3.75% from 3.5% when the Fed meets Sept. 20, down from a 90% chance priced in Wednesday and 100% odds priced in last month. The odds for a move to 4% in November have been trimmed to 21% from 52%. Odds for a move to 4% in December, assuming a rate hike was passed up in November, stand at 38%, down from 82%.
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