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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (5971)	2/3/2000 1:27:00 PM
From: Lee	Read Replies (1) \| Respond to of 24042

Hi T2,..Re:.If the short covering in the bond is happened or happening, there could have been a lot of selling of these types of stocks (cyclicals etc) as a result. I think the rally in the bond market has more to do with the Treasury's announcement yesterday of retiring debt and issuing less debt than short covering. The following are reports from the CBOT from noon yesterday and bond opening this morning. Noon report. cbot.com Debt futures were holding in the upper portion of their trading range as the FOMC's announcement on interest rate looms less than an hour away. Traders expressed some surprise at the amount of activity that has been seen this morning. Volume is usually very low in the hours before an interest rate change is expected to be announced. But this morning's Treasury announcement caught some off guard and triggered a rise in prices along the yield curve. The biggest piece of news to come out of the announcement was the Treasury Undersecretary for Domestic Finance's comments that the 10-year note may be on its way to becoming the nation's main benchmark. The Treasury also announced that next week's refunding will be $5 billion less than expected. Fears about the scarcity of supply and the possible demise of the 30-year government bond drove prices higher in fast market conditions. The market eventually calmed down and entered into its traditional wait-and-see mode ahead of the FOMC announcement. Equity futures were being confined by nervous anticipation of the interest rate decision. Analysts said tech stocks were trying to drive the DJIA(sm) higher as they work their way back from last week's losses. But the gains were being held in check by nervousness ahead of the FOMC decision. Cash Fed funds were last reported to be trading at 5 3/4%, the same rate traded when the Fed added reserves with overnight tri-party settlement repos. Morning Feb 3 opening. cbot.com Debt futures were in positive territory. Concerns over the supply of 30-year bonds and positive spillover from overnight gains during Project A trading supported prices. Lifting the market was news that the European Central bank raised their base rate by 25 basis points to 3.25%, a surprise to a number of analysts. According to many traders with little fresh news today the focus will turn to tomorrow's employment data for January. Equity futures were higher. Underpinning prices was a higher bond market this morning. Additional support came from overnight gains in the overseas markets. Many investors said they would be looking ahead to Friday's January employment numbers. Cheers, Lee