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Biotech / Medical : Biotech & Pharma.T.A,
BIB 78.87-1.3%Dec 2 4:00 PM EST

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To: IRWIN JAMES FRANKEL who wrote (1478)12/28/2005 10:20:41 AM
From: Jibacoa  Read Replies (1) of 3722
 
O.T.

Re: The Inverted Yield Curve

In today's WSJ there are some comments regarding this subject. In the article on Page C4 by S.Stoyko she points out that the inversion took place yesterday around 3.05PM when the 2yrs. note yielded 4.35% and the 10yrs. note yielded only 4.34% <g>

However, with the light trading on account of the holiday season, it seems that we will have to wait until the first of the year to see if this trend will continue.

She points out that uncle Al in the past was among those that believe that an inverted curve isn't a sure signal of economic weakness.

If the yield inversion continues, it will put pressure on the mortgage backed bonds.

On the other hand, there is an article pointing out that the dollar is going up, especially against the yen and the pound.<g>

While some traders feel that yesterday's curve inversion is not significant until its is corroborated under more liquid market conditions, others feel that the inversion had something to do with foreign investors strong appetite for US Treasurys.<g>

Bernard
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