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Strategies & Market Trends : Ride the Tiger with CD

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To: Canuck Dave who wrote (157401)5/7/2009 2:54:57 PM
From: robnhood  Read Replies (1) of 312820
 
<<"The auction is big news because now it's showing that maybe the Chinese don't want our bonds. If the cost of capital for the United States becomes more expensive, then the recession is going to take that much longer to get out of," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.
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<<It's not exactly a normal state of affairs, but weak demand in a Treasury auction of 30-year bonds is being cited in part for the weakness in stocks on Thursday. Both Treasuries and stocks were moving sharply in the same direction - down. Stock investors were worried that slowing demand for government debt could raise the cost of capital and dull any economic recover.>>
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