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To: IceShark who wrote (54892)	8/5/1999 10:31:00 AM
From: Lymond	Respond to of 86076

Ice, I agree that the 30-yr is the most important rate for equity markets to watch. It's the most visible sentiment indicator, and gives a quick read on overall risk tolerance and, along with TIPS, general inflation expectations in fixed income markets. It's also the base rate used in discounted cash flow/earnings analysis -- not that anyone really uses such obsolete valuation tools anymore <g>. I just wanted to point out that yesterday's action was somewhat aberrant, and the overall sentiment in bondland remains poor. Keep an eye on spread markets -- they were a good leading indicator of stocks last summer and are certainly flashing red now, even if largely for technical reasons.