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AMZN 228.70-0.2%3:52 PM EST

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To: Bill Harmond who wrote (29676)12/11/1998 9:54:00 PM
From: joe  Read Replies (1) of 164684
 


>>Long bond yields backing up cause the curve to steepen. Plus the bond market has been a refuge from fear.<<

Long bond yields going lower (right side of graph), will
cause the values to get closer to short term yields. Isn't
this closer to a straight line?

If this is what's happening, and it stays for a while, there
might start to be fear that the short term rates are too high.
Remember, this was part of the equation that was edging
rate cuts, so yes it's a refuge from fear (world problems),
but also an indicator
of economic worries which need to be solved by lowering the
short term rates.

Isn't this your thoughts also? That's why you partly have a position
in long bonds from what I understand - the trend towards lower
interest rates.

I'm just wondering what your thoughts are on this.
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