On Mon, 24 Mar 2008, Doug Henwood wrote:
>> I'm not sure I follow this -- the 1 month T-bill is at 0.5% because the
>> market expects the Fed funds rate to come down 1.75% in the next month?
>
> It's in the calculations - the assumption that the Fed will be pushing
> short rates down.
I guess my question was: doesn't that seem like a lot more than is likely?
But I guess that's a silly question. No one says the markets can't be wrong.
Michael