Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: wlheatmoon who wrote (15669)	3/9/2000 6:30:00 AM
From: Giordano Bruno	Respond to of 42523

If you have access to a Bloomberg terminal type in the following: GT30 <GOVT> GT2 <GOVT> HS <GO> When you bring up this spread you can see that selling 30 yrs and buying 2 yrs went from a Give Up of 50bps last Fall to a Pick Up of 50 bps as recently as February. Let's get our facts straight. The curve inverted not because PIMCO bot treasuries in Jan--which they did-- but because Summers gave the signal in January. The media tend to confuse "cause" and "effect." If you are now only picking up 34bps,its because Smart Money has realized that as the stock mkt accelerates in its decline, there may be some big changes in the the curve. Some "flight-to-quality" will result in increased demand for the Short End even with more rate hikes to come....and there may be some serious doubts now about how many more rate hikes the FED will go with in "an election year" with the DOW moving down 23% & the Nasdaq plunging 50%. GLOBALLY STOCKS WILL SLIDE! JGBs will go into a FREEFALL as 30yr bonds move above 7% on fears that the FED will care more about averting a global stock mkt crisis than about inflation risk......SAYONARA NIKKEI, AU REVOIR CAC, AUF WIEDERSEHN DAX! Sorry if I missed anyone. James Smith