Bonds and Treasury futures were staging a short covering rally following the FOMC's Mar. 22 minutes that apparently weren't as hawkish as many anticipated, according to S&P Marketscope. The yield on the 10-year Treasury plunged to a one-month low of 4.36%. Some economists are shaking their heads over the rallies. Miller Tabak's Tony Crescenzi said the "minutes appear to show a smaller degree of concern about inflation risks than some may have feared and they also provide guidance as to how to both anticipate and interpret an eventual change in upcoming policy statements, particularly with respect to the use of the word 'measured'". S.G. Cowen's Steve Gallagher believes the "Fed will continue a 'measured' pace through June. they see economic slow down in second half of year."
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