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To: Investor2 who wrote (5696)6/9/1999 3:31:00 PM
From: Wally Mastroly  Read Replies (3) of 15132
 
Comments on 6%, etc. (from another thread):

>The reason you can't brush off the 6% level on the long bond is that program trading will kick in - if it closes at or above that today, you will see the selling start tomorrow.

Program traders will move their funds from the stocks to the bonds. Fixed income and bond funds that pay 2-4% have a very profitable level when the long bond is above 6%. Its not the traders that will move, but the funds and institutions.

lastshadow <

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