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Politics : Formerly About Applied Materials
AMAT 327.01+2.5%Jan 16 9:30 AM EST

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To: StanX Long who wrote (62312)3/25/2002 1:09:47 AM
From: StanX Long  Read Replies (1) of 70976
 
Bonds preview: Data unlikely to cheer investors
Published: March 24 2002 20:19 | Last Updated: March 24 2002 20:48

news.ft.com

New economic data are unlikely to provide any relief to government bond investors this week, both in the US and the eurozone.

On Monday, US investors will focus on figures for February durable good orders and March consumer confidence. Analysts believe the data will come in at, or above, market expectations, damaging any lingering hopes of a more sluggish economic recovery.

"Basically, it's still a case of the bond markets adjusting to the idea that central banks have entered a tightening cycle," said Jeremy Hawkins, head of interest rate and currency strategy at Bank of America.

In Europe, bond investors will be keeping close a watch on the results of the Ifo survey. The index rose 2.5 points in February and is expected to rise again in March, which could further undermine eurozone bond prices.

On the supply side, a heavy injection of corporate bonds into the markets could have a negative impact on government bonds this week, one analyst said.
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