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Technology Stocks : Dell Technologies Inc.
DELL 122.55+4.4%Nov 21 9:30 AM EST

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To: TTOSBT who wrote (123153)5/7/1999 1:46:00 PM
From: Lee  Read Replies (1) of 176387
 
TTOSBT,..Re:.Then the market was not happy with that the 30y bond traders keep telling the FED by it's trading they needed to do more much more.

The bond yields were decreasing hugely in Oct., down to 4.69% because of flight to quality buying due to global economic crisis. Why would the Fed ease when the bond market was already doing that?

bigcharts.com

Actually, the Fed did the additional 50 basis points because debt market liquidity completely dried up and the spreads widened considerably between corporate debt and treasuries. This Fed action was almost an emergency ease because of the liquidity problem.

Foreign selling may be balanced by domestic buying if the government manages the budget surplus properly and continues to decrease treasury debt offerings. There are a lot of balances. I think this weeks selling is probably due to a combination of strong numbers and technical levels being breached.

I tend to agree with NAZ7777 about not having a rate hike this year mainly because the turnaround in SE Asia is still very early and Japan is still in deep trouble.

JMHO,

Lee
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