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To: C Nelson Reilly who wrote (92932)2/3/2000 9:53:00 PM
From: Victor Lazlo  Respond to of 164684
 
C Nelson- nice going with ICGE.

I am not sure this bond rally will help stocks much. The bonds are said to be so strong due to short covering after treasury's comments about fewer bond issues this year.

But this condition did not come on overnight. I was reading about this over 18 mos ago- predictions that the Fed govt would not need to sell so many bonds in the future, as the budget was predicted to become more balanced.

i think rates will slowly move back up starting late next week, but imo it could be a while before we see 6.7 again.
It will be interesting to see what the Fed does now. They raise rates and the long bond yeild plummets! Al must be in some kind of funk now. LOL!

Victor