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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: pater tenebrarum who wrote (23833)8/25/1999 7:32:00 PM
From: fedhead  Read Replies (1) | Respond to of 99985
 
What signs will you look for that will indicate that the end is near ?

Thanks
Anindo



To: pater tenebrarum who wrote (23833)8/25/1999 10:45:00 PM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 99985
 
Heinz, the treasury issued inflation indexed bonds, were the principal grows with the US inflation.

Those bonds yield now between 3.95% to 4.01% and trade below par (all of them the 5, the 10 and the 30year). Normaly they should trade at par as they are inflation proof.

With reported inflation around 2% the premium is 4% which is a clear indication that the market does not agree with the formal government inflation statistics. They indicate that inflation is 1.25% to 1.5% higher.

you can check the quotes at bloomberg.com

BWDIK
Haim