Hmmmm. This marks the second auction in a row in which rates have risen.
On April 21, 2008, the Federal Reserve conducted an auction of $50 billion in 28-day credit through its Term Auction Facility. Following are the results of the auction:
Stop-out rate: 2.870 percent
Total propositions submitted: $88.288 billion
Total propositions accepted: $50.000 billion
Bid/cover ratio: 1.77
Number of bidders: 83
If this is telling us anything, a 50 point cut at the next meeting is out. One could even make the argument a 25 is in doubt….
Right now the dollar should be a prevailing issue..
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