Waiting for the big Kahuna Message Board

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Strategies & Market Trends : Waiting for the big Kahuna

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To: Cynic 2005 who wrote (33066)	11/5/1998 3:41:00 AM
From: tekgk	Read Replies (2) of 94695

Notice how the 0.25% rate cut by Greenspan has resulted in a 0.6% increase in the long bond rate. Even T-Bill rates have climbed to 4.5% from a low of 3.5% a few short weeks ago. The pain has been much worse in the private sector bonds. The explanation is simple - Japanese investors don't like the bubble management gimmicks and have purchased 75 billion in euro denominated bonds in the last couple of months as a result (they are not as broke as everyone thinks they are). This was money that used to fuel our bond markets. A good general rule is that whenever a cut in central bank rates results in an increase in bond rates look out below for that currency. Another good general rule is that when a currency crumbles equity markets often follow the currency down, but with a delay. quote.yahoo.com^TYX&d=3m

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