A move to drain reserves would have pushed the funds rate higher.

Yesterday, the Fed moved to drain reserves from the banking system.

But there was a large need to drain reserves, and the Fed didn't do it.

The bond market was also helped somewhat by the fact that the Fed did not drain reserves this morning.

The Fed took no action yesterday to drain reserves and thus push up short-term rates.

The Fed could have waited until later in the period to see if it needed to drain reserves.

Today, for example, the Fed moved to drain reserves from the banking system, which was not expected to happen until next week.

In three of the last five business days, the Fed has overtly drained reserves.

It was the second day that the Fed intervened to drain reserves.

"This morning, when the funds were trading at 7 5/8 percent, they surprised everyone by draining reserves."