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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: pater tenebrarum who wrote (104907)5/25/2001 3:46:05 PM
From: John Pitera  Read Replies (2) of 436258
 
is the FED easing cycle ending?? some musings from BondLand

10:29 ET
30-year: +8/32..5.825%....GNMAs: +1/32....$-¥: 120.56
Hearing increased talk that the market is beginning to sense a slowing or end of the easing cycle. Mixed comments out of both Meyer and Greenspan have given some the notion that we may see another 25 bp, but that could be the end of it. Why this change in mindset? because the Fed, while claiming that inflation is not a problem, does not want to create it. Traders are beginning to get the feeling that yields are beginning to have more of a bias towards backing up, and 5s and 10s are not the place to be in that situation.



the 10 year note topped out in price March 22nd the same day that the DJIA bottomed.

that was the day with the 4.91 TRIN reading and other evidence of some climactic selling
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