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Pastimes : The Naked Truth - Big Kahuna a Myth

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To: Giordano Bruno who wrote (57291)8/19/1999 11:57:00 AM
From: pater tenebrarum  Read Replies (1) of 86076
 
Jim, the foreigners who were net sellers of t-bonds this year will only be back if and when they go lower...the U.S. based investors who bought the bonds from them and the traders who sold buckets full of puts on the sept. contract are collectively praying for higher bond prices. some demand is probably generated by the widening of spreads - corporates being dumped in exchange for treasuries. still, i see the 30-yr. yield at 6,50% some time this year if no financial calamity strikes the world's stock markets. the Fed's feeble gradualist approach will neither stop the asset bubble nor the overheating economic bubble.
in short: investors would prefer both higher and lower bond prices, depending on whether they are invested or not.
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