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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

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To: Wally Mastroly who wrote (10571)12/20/1999 4:08:00 PM
From: Wally Mastroly  Read Replies (1) of 15132
 
Bond market may be alone in fear of the FED:

Bonds fall on fear of Fed

NEW YORK -- Stocks gave up most of their gains Monday as bond yields
soared on the fear that the Federal Reserve will suggest on Tuesday that
future interest-rate increases may be needed to cool the nation's economic
growth. In late trading, the Dow Jones industrial average was down about
130 points and the Nasdaq composite index was about 15 points into record
territory. The bond market faltered in midafternoon, pushing the yield on the
30-year Treasury to 6.43%, the highest level since Oct. 17, 1997, amid
worries about the the Federal Reserve's last policy-making meeting of the
year, set for Tuesday. Most analysts expect central bankers to leave
short-term interest rates unchanged, but many are wary of a change to a
''tightening'' bias, which would mean the Fed is inclined to raise rates on any
future signs of inflation.

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