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

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To: Real Man who wrote (77934)1/21/2007 6:47:59 PM
From: Crimson Ghost  Read Replies (2) of 110194
 
In our crazy bubble world some basic laws of economics have been (temporarily?) turned on their heads.

I can still remember the days when plunging oil prices and resultant lower inflation was good for bonds. But no longer. Now lower oil prices mean OPEC has less cash to invest in bonds -- hence the recent weakness.

Another example of how fundamentals now matter much less than financial supply and demand in a bubble oriented world.

If oil drops to $40 will TNX yields surge over 5%?
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