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Strategies & Market Trends : India Coffee House

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To: Mohan Marette who wrote (4458)6/11/1999 5:36:00 PM
From: Lee  Read Replies (1) of 12475
 
Hey Mo,..Re:.rates

Mohan, it's beginning to look more likely for a rate hike on the 29th or 30th.

POLL-Fed's 25-bps June funds rate hike widely seen
biz.yahoo.com
Strong domestic demand, as confirmed early on Friday by news of a 1.0-percent jump in May retail sales, was the main factor cited by economists who anticipate higher U.S. rates.

Also, Larry Kudlow on CNBC just said he didn't think we'd get a rate hike because the spreads are widening out again and a rate hike would just make the illiquidity worse? Like last Sept./Oct. Didn't catch all his comments though, he might have had other reasons as well.

Couldn't find a table with the spreads listed (and don't remember how wide they got last fall) but did find this.

US CORP BONDS-Pressured by supply,rates;eye on CPI
biz.yahoo.com
Spreads to U.S. Treasuries ended one to two basis points wider across the board with bank and finance sector paper experiencing the bulk of the widening this week, traders said.

So what do you think now? Or are we going to wait until after Wednesday's report and then give the odds?<g>

Also, on the rumors flying about the hedge fund, how many more big investment houses are left that the Fed can strong-arm into accepting more liabilities if the rumors turn out to be true? Presumably they had to provide a longer time frame for some of LCTM's positions which means I guess they just rolled them further out. So some may still be open?

Cheers,

Lee
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