0.67 yesterday, the interest on reserves were supposed to prevent that http://www.newyorkfed.org/markets/omo/dmm/fedfundsdata.cfm
1) Could "it" be that there's just too much cash pressuring the rate lower right now? 2) Traders want the "safety" of Fed Funds compared to other instruments? 3) The deferred Fed Funds futures contracts seem to be reflecting another 25 basis point easing. 4) Are you still "long" the November from ~100 ticks lower?
I agree with 1). I switched from nov 08 to jul/oct 09 a while back, you get to buy the bubble at a discount on the deferreds
Hmmm... Banks would rather lend to other banks overnight at 0.22% vs store their money at the Fed and get .65% interest Discount window is way up at 1.25% Am I misunderstanding something about the Fed funds? Isn't it the overnight lending rate between banks? What could possibly be their rational?
I agree it doesnt make sense. the FDIC guarantee in unsecured interbank lending charges 0.75% annualized so it isn't that
The market is behaving "badly". This must be the "final top"! Put in some orders to short-sell the market at 99.99 and 100.00!
fed hiked pretty hard http://www.federalreserve.gov/newsevents/press/monetary/20081105a.htm both required and excess reserves will earn pretty much the fed funds target rate