Dominic Konstam
Dominic Konstam
belly bit curve cut expect fed federal front funds january looking middle next percent point quarter rally rates recovery third trade tried
The front end of the curve tried to rally a little bit and there was a trade down in the belly of the curve. We expect the Fed to cut rates another quarter-percentage point in January and for federal funds to be at 1.5 percent in the middle of 2002. We're looking for a recovery in the third quarter of next year.
appetite improved reasonable reflecting
The bid-to-cover improved a lot, reflecting a reasonable appetite for the two-year notes.
economy inflation quarter rid slow third
In the third quarter they will probably have to come back and do some more tightening. As things stand, they haven't really done enough to slow down the economy and get rid of inflation risk.
claims clear fed gone people took
Claims took people by surprise. It makes it clear the Fed has not gone too far.