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To: GST who wrote (62497)	6/14/1999 7:38:00 PM
From: Sonny Blue	Read Replies (1) \| Respond to of 164684

The Fed tightened 7 times from Feb 94 to Feb 95, raising rate from 3.25 to 6%. The Fed tightened 14 times from Mar 88 to May 89, raising rate from 6.75 to 9.75%.

To: GST who wrote (62497)	6/14/1999 7:43:00 PM
From: BGR	Read Replies (1) \| Respond to of 164684

GST, Indeed. However, the question to ask is, why is there short covering and Japanese intervention? You may remember that the main thrust of all the bond bears has been that as the Japanese economy revives, Japan (largest foreign holder of US bonds I believe) will start to repatriate funds which will push the dollar down and the yield up. Well, guess what? The Japanese are not interested. They like the dollar where it is (let's not go into the why of it for now). That shoots a big hole the bears' position. And, it will be hard to argue that the US wants a weaker dollar in the face of trade deficits, so this is probably a synchronized move. Who would like to sell bonds when two major CBs are not encouraging it? -BGR.