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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: Joseph G. who wrote (8798)	10/16/1998 1:28:00 PM
From: MythMan	Respond to of 86076

yeah I know.. was asking if you changed view from yesterday pm.

To: Joseph G. who wrote (8798)	10/16/1998 1:33:00 PM
From: MythMan	Read Replies (2) \| Respond to of 86076

Exerpts from an NYT article today. second paragraph very interesting. >>But the timing of Thursday's rate cut was intriguing on several other counts. First was the fact that the Fed decided to announce its move at 3:06 P.M., relatively late in the afternoon, while the stock market was open but the Treasury bond futures markets were closed. This is interesting because the futures markets -- the world's most liquid -- are where Treasury bond traders execute a large percentage of their trades. With this market closed, bond traders could not react to the Fed move as well as they could have if the rate cut had been announced at 2:15 P.M., as is typical. Indeed, some traders speculated that the timing of the Fed's move appeared calculated to get a rise out of the stock market. Why? Because it was done late in the day before today's expiration of October equity options. And, if the Fed had moved while the bond futures market was still open, it ran the risk of a negative reaction from bond traders. This could have dampened stock traders' enthusiasm a bit. <<