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Strategies & Market Trends : Waiting for the big Kahuna

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To: William H Huebl who wrote (65158)8/3/2003 3:29:42 AM
From: Real Man  Read Replies (1) of 94695
 
Thanks, Bill - we'll see how long they can keep what's happening to Fannie and Freddie under the rug. The Fed is buying their debt with both hands, and keeps it quiet. They have to. So, I guess, so far they (big money) decided it will work to stop the flood. Will it?

Bond Auctions of 60 billion dollars total are scheduled for Tuesday, Wednesday, Thursday. The Fed will have to buy it if nobody shows up. If nobody shows up, it will be very bad for bonds.

It's a bit too early to call for allocation traders to start rotating back into bonds, since everybody seems to be using pro forma earnings for this model.
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