Did The Discount Rate Increase Fail?

From the WSJ:

Stock and bond markets initially reacted positively to the Fed's overture, but grew more skeptical as this week began. The reaction yesterday in the Treasury-bill market can be seen as "a vote of no confidence in the Fed's move," said Larry Dyer, an interest-rate strategist at HSBC Securities in New York. "If people felt that the end of the problem was around the corner, yields would be higher. But we're still seeing a continued flight to quality, and that's not what the Fed wanted."