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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (5244)	12/10/2001 3:48:28 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

09:56 ET 10-year: +2/32..5.154%....GNMAs: +7/32....$-¥: 125.99 A survey among the primary dealers shows unanimous expectation for a 25 bp ease at tomorrow's FOMC meeting, which leaves a federal funds rate target of 1.75%. Federal funds are the overnight borrowing rate between commercial banks and the interest rate the Fed directly controls. Looking in to 2002, 26% expect the Dec 11 ease to be the last of the easing cycle while 70% expect a policy rate trough of 1.50%. One of the 24 expects the funds rate to bottom at 1.25%. 83% of the primary dealers expect the Fed to tighten policy in 2002 while 17% (4) do not. The expected timing of the tightening is unclear with the calls falling equally on either side of the end of the 3rd quarter. ............... also....The Fed has reported that two new Board Governors were sworn in Friday and will attend tomorrow's FOMC meeting. Susan Schmidt Bies and Mark Olson fill the two empty seats left by Alice Rivlin and Susan Phillips. Fed Gov Kelley, who stated he would leave the Board when replacements filled the empty slots, will not be attending tomorrow's FOMC meeting. No retirement date has been set yet