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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: nextrade! who wrote (910)	4/12/2000 7:14:00 AM
From: GROUND ZERO™	Respond to of 33421

Here's a curious article: Bond Patrol Apr 11 2000 2:20PM CST Archives... U.S. Treasuries Fall After Baker's Comments by Don Diaz Senior Analyst/Contributing Editor U.S. treasury notes and bonds have lost ground today, paring gains from yesterday's session following comments by U.S. Representative Richard Baker. Baker made statements to the effect that Fannie Mae, and Freddie Mac are financially sound instruments, driving bond traders and investors out of treasuries and into agency debt. Baker, a Republican from the state of Louisiana had earlier voiced his concerns over the large amount of debt the nation's largest mortgage lenders were holding, resulting in huge selling of agency debt as treasuries soared higher. Baker essentially reversed himself today, stating that agencies do not present near-term default risk. Treasuries are posting their largest decline in over two months in the wake of Baker's statements. Debt traders and investors are selling long positions of treasury debt in order to buy more attractive agency bonds. A typical 30-year Fannie Mae 8 percent mortgage bond is out yielding the 30-year treasury by as much as 200 basis points, or 2 percent. The bellwether 10-year treasury is off 28/32, or $8.75 per $1,000 face amount, at 104-17+/32 to yield 5.88 percent. The former treasury benchmark security - the 30-year treasury - is off 1-17/32, or $15.31 per $1,000 face amount, at 106-27/32 to yield 5.77 percent, its largest decline in over eight weeks. Disclaimer: This report is published solely for informational purposes and is not to be construed as advice or a recommendation to buy or sell a security. Trading involves risk, including possible loss of principal and other losses. Your trading results may vary. No representations are being made that utilizing techniques mentioned in this article will result in or guarantee profits in trading. Past performance is no indication of future results. GZ