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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: mishedlo who wrote (20067)10/16/2004 8:41:27 PM
From: Square_Dealings  Read Replies (1) of 110194
 
<anyone that thinks the us is going to hike 75 more bps>

but the Fed doesn't have to hike for rates to go up. As the dollar falls foreigners would most likely stop buying or start selling treasuries and converting to something else

Low long term rates have been mostly due to foreign purchases of US debt. the figure is something over 50%

Call me nuts but I think the dollar will fall and so will bonds driven primarily by world energy crisis and growing US trade deficit. Preferably slowly but nothing says it has to be orderly. If world oil/gas production continues to decelerate at the current pace the dollar could get going quickly

M
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