Earlie,
My position was that the net selling of Treasuries was probably accompanied by a larger net buying of equities, resulting in a net inflow to the US which pushed up the dollar. An article by Daniel Kadlec in this week's Time magazine confirms that. What was your position again? :-)
Now, if investors sell bonds to buy stocks, interest rates go up for sure, but is that negative for stocks? Think hard before you answer that one.
And then, of course, the US Treasury announced that it was going to buy the bonds that the private investors are selling, making good use of the budget surplus. That whipsawed those who were betting that if not stocks, bonds, at least, have to crash! Ho ho ho!
-BGR. |
