Permalinks and subdirectories as site root

[Jack Baty]

Is there a way have permalinks, etc handle a site deployed to a subdirectory? Say I want to host my Fargo-based blog at myhost.com/blog. I set my Outline Settings -> CMS -> URL to "http://myhost.com/blog" and the "eye" icon works as expected but the rendered html pages use absolute URLs. This means that a permalink for a post rendered at myhost.com/blog/2014/12/30/ is rendered as myhost.com/2014/12/30/

Am I missing a setting somewhere?

Thanks