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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (7394)	8/2/1999 10:23:00 PM
From: Justa Werkenstiff	Read Replies (1) \| Respond to of 15132

Federal Reserve Watch The implied yield on the fed funds futures contract for September delivery rose 2 basis points to 5.20 percent, 20 basis points above the target. So the market now sees an 80% tightening probability of .25 on August 24 - 25 The implied yield on the October contract rose 2 basis points to 5.29 percent, 29 basis points above the target. The spread between the yield on the futures contracts and the fed funds target suggests investors expect the Fed to raise the overnight bank lending rate again by October. So the market has fully discounted at least one tightening by October and it is working on discounting a further rate rise as well.