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To: David Peterson who wrote (29364)5/7/1999 1:39:00 AM
From: Ibexx  Respond to of 152472
 
Several leading WS economists had been advocating that Fannie May (FNM) should be watched closely as a proxy for Fed rate increase, and it should remain above its 200 day ema (ca. 67) if no rate hike is in store for us.

I've been using this "surrogate" to gauge WS sentiment regarding rate increase rather accurately. But today's market action was odd: long bond fell while FNM went up. There was diversity in opinions between (some) equity and bond traders!

Ibexx