Correction/Yesterday's News

The other day I mentioned that Fed futures were 50 bps below the target rate. They were only about 25 bps below. However, the idea that futures were slipping vs the target was the key point and today's Fed release suggests this is the right idea. Note how quickly the market has rallied from the announcement this afternoon. Buyers don't need many excuses now to buy. More and more the Feb 27 decline is taking hindsight shape as an "external" event. Subprime concerns are also becoming yesterday's news.