A more accurate gauge of the Fed's intentions could come this week, money market economists said, because the Fed will need to drain reserves from the banking system.

The housing news is "modestly encouraging," said Dana Johnson, chief money market economist at the First National Bank of Chicago.

"By itself, the lack of Fed intervention does not reveal any change in policy," said Jeffery Leeds, a money market economist at the Chemical Bank.

The activity, coupled with the Fed's actions on Friday, was enough to convince some money market economists that the central bank has indeed tightened credit once again.

Anthony L. Karydakis, a money market economist at Mitsubishi Bank, characterized the session as "one of the dullest we have seen in some time."

John Youngdahl, senior money market economist at Goldman, Sachs & Company, said this trend could eventually make the Fed uneasy.

Darwin Beck, a money market economist with CS First Boston, agreed.

Long-term interest rates, already down to levels not seen since April 1987, could fall further in coming weeks because of strong foreign and domestic demand for bonds, money market economists said.

Most money market economists had been expecting that the Fed would either provide a modest amount of reserves or stay out of the market.

"There doesn't seem to be evidence of that showing up," said John R. Williams, money market economist for the Bankers Trust Company.

A more accurate gauge of the Fed's intentions could come this week, money market economists said, because the Fed will need to drain reserves from the banking system.

The housing news is "modestly encouraging," said Dana Johnson, chief money market economist at the First National Bank of Chicago.

"By itself, the lack of Fed intervention does not reveal any change in policy," said Jeffery Leeds, a money market economist at the Chemical Bank.

The activity, coupled with the Fed's actions on Friday, was enough to convince some money market economists that the central bank has indeed tightened credit once again.

Anthony L. Karydakis, a money market economist at Mitsubishi Bank, characterized the session as "one of the dullest we have seen in some time."

John Youngdahl, senior money market economist at Goldman, Sachs & Company, said this trend could eventually make the Fed uneasy.

Darwin Beck, a money market economist with CS First Boston, agreed.

Long-term interest rates, already down to levels not seen since April 1987, could fall further in coming weeks because of strong foreign and domestic demand for bonds, money market economists said.

Most money market economists had been expecting that the Fed would either provide a modest amount of reserves or stay out of the market.

"There doesn't seem to be evidence of that showing up," said John R. Williams, money market economist for the Bankers Trust Company.