Pushing the yields down

During August we've seen really strange events, one was the falling of the effective fed funds rate, 5.25% is just a target and some times the hunter miss it.
The august 10 the fed key rate suddenly felt near 4.6%.


And for the first time since September 2001 the fed funds traded three times at zero.



While everybody was talking about the symbolic discount rate cut and the several injections the fed was silently doing much more serious moves.
This kind of emergency action is very effective to quickly send short term rates lower for few weeks. The fed funds rate daily average for the past 20 days is at 4.92%.
And you are still asking for a 25 basis-point rate cut ?

The flight to safety was just a part of the recent yield story.

Real Fed funds Vs a Mortgage ARM index (weekly)