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Strategies & Market Trends : The picks

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To: Trader X who wrote (4828)2/12/1997 8:15:00 PM
From: steve susko   of 6124
 
Kevin,

"10 YEAR NOTE AUCTION............ BIDDING RANGE 6.400-6.350 PCT
YIELD 6.374 AVERAGE YIELD UP FROM 6.273 PCT AT AUCTION ON
06.NOV.96 AVG YIELD HIGHEST SINCE 6.502 PCT AT AUCTION ON
08.OCT.96 Look at that yield! Only 1/2 % less than the 30 year. the interest rates are expecting inflation in the near future... This is the flatest I've seen the yield curve since the last recession. The market lags the yield curve by 3 - 6 months. KH.
keeping an eye on the big picture."

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Kevin,

I'm trying to understand the logic in your bond analysis. The 10 yr is only 1/2% less than 30 yr -- does this means intereste rate is expected to drop ?? so we can hope for lower interest rate and therefore another rally in the equity market in the coming months ??

Did I get it or miss it ??
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