Thursday, July 26, 2007

UPDATE 1-US RATE FUTURES-Rally on weaker-than-expected durables

(Reuters) - The government said new orders for big ticket-items such as
airplanes and refrigerators rose 1.4 percent last month,
falling short of a 1.8 percent increase forecast among
economists polled by Reuters.




December federal funds futures were up 0.055 at
94.8800, implying traders priced in a 52 percent chance of the
Fed cutting rates by a quarter percentage point by year-end.
This compares with about a 30 percent chance at Wednesday's
close.


Read more at Reuters.com Bonds News

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