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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: fut_trade who wrote (1989)	12/14/1999 2:26:00 PM
From: pater tenebrarum	Respond to of 19219

Peter, my experience is this: a repo and/or coupon pass usually produces a rally in stocks immediately after it is announced. they are only useful for tracking probable M3 expansion inasmuch as they occur now every single day (thus no pullbacks of any significance in the NAZ)...which shows that credit demand is exploding and the Fed can only keep the funds rate on target by injecting massive amounts of liquidity. exploding credit demand means M3 will be rising fast. it also means that bond yields will ultimately have to go MUCH higher to accommodate this demand surge. note that today's Q3 current account data show the current account deficit on an incredibly fast trajectory. this will also continue to pressure rates... regards, hb