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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (12704)	3/23/2000 4:35:00 PM
From: Les H	Respond to of 15132

US TSYS FIRM; GAINS LED BY SHORT END ON AGENCY FEARS CHICAGO (MktNews) - U.S. Treasury prices were moderately higher in early morning trading Thursday with the short-end leading the way higher on safe-haven buying linked to U.S. agency debt concerns. Wednesday, the debt markets were jostled and agency issues were hit by comments by Treasury Undersecretary Gary Gensler. Sources said Gensler touched a nerve when he indicated the Treasury supported the repeal of credit lines to government sponsored entities like Fannie Mae and Freddie Mac. Although he said the repeal would be purely symbolic, he pointed out the it "would be consistent with the congressional requirement that all GSE securities carry a disclaimer that they are not obligations of the U.S. government." Although overnight volume was light, the two-year sector led the uptick on the flight-to-quality concerns, sources said. Tokyo/London combined Govpx volume light at $1.5 billion, which is approximately half the normal order flow, source said. Two's were most active issue followed by fives and 10-years. Traders said with front end performing well, it now makes sense with 2-year yielding currently 6.45% to contemplate setting up shorts ahead of the March 29 auction of $12.0 billion in paper. European bonds also were bid overnight after the German government announced that its debt offerings will be lower than expected. Germany said it will sell E10 billion new 10-year paper on May 3 and top up its January 4 sale of 6.25% 2030 bonds by E2 billion to a total of E7 billion. However, the German government plans no 30-year sales in second quarter 2000, which did not come as a great surprise, dealers said. The authorities also plan to sell E5.0 billion in five-year paper on May 17. Elsewhere, Taiwan stock market continues its surge as fears about tensions between China and Taiwan following weekend elections fade. Taiwan ended up 464.48 points at 9533.87. The Hang Seng was up 163.54 to finish at 17710.6. The Nikkei was down slightly, led by internet stocks. In the corporate arena, a $5 billion Freddie Mac 10-year deal was launched Wednesday and is expected to price Thursday. Apart from debate over Treasury and agency supply, economists say the remainder of the week is likely to be sedate. Initial claims for the week of March 18, set for release Thursday, are expected to gain by about 13,000 to 275,000 after last week's low levels. Also on tap for Thursday is the 10:00 a.m. EST testimony from U.S. Treasury Secretary Lawrence Summers at the U.S. House Banking Committee on the International Monetary Fund. At 8:15 a.m. Thursday, the 30-year bond was trading at a yield of 5.939% compared with 5.966% at 3:41 p.m. Wednesday, while the 10-year note was at a yield of 6.070%, versus 6.124% late Wednesday. -- Alyce Andres; (312) 697-9675; email: aandres@marketnews.com. >>>The above probably doesn't help the high-yield junk bond >>>market.