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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: russwinter who wrote (21530)1/17/2005 10:58:49 AM
From: dpl  Read Replies (2) of 116555
 
"Do you realize that fed fund rates have been increased from 1.5% in early August to going on 2.5% on Feb. 2nd, and ARM rates (using the MBAA figure) have only gone up from 3.85-3.90 to 4.10-4.17. It's been a combination of foreign central banks heavily buying agencies and shrinking spreads (especially of late), and lending resell and portfolio margins shrinking. "

Spreads can only shrink so much.Does this mean that we may be at the point were ARM's go up point for point with FF rate rises?

David
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