WASHINGTON -- Bond market participants are wondering whether the Federal Reserve's cuts Friday in short-term interest rates signal the end of the recent market rally.

For the municipal market, the Fed's cut in the discount rate to 5.0% from 5.5%, and an accompanying action to lower the federal funds rate to 5.25% from 5.5%, carry a mixed message, said George Friedlander, a managing director of Smith Barney, Harris Upham & Co.

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