A Fed ease buoyed more than $1 billion in new issues yesterday, but the supply made secondary traders cautious and prices ended narrowly mixed in sluggish activity.

In another attempt to give the economy a boost, the Fed cut the discount rate to 4.5% from 5%, the lowest level in nearly 20 years, and lowered the funds rate to 4.75% from 5%. Treasury prices moved higher, despite another disappointing auction, but tax-exempts foundered in anticipation of hat traders say its likely to be a sea of bonds in the secondary.

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