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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?


To: Les H who wrote (79476)4/14/2000 10:52:00 AM
From: Freedom Fighter  Respond to of 132070
 
Les,

It's always been my view that the 30 year bond should reflect "30 year inflation expectations" and the level of savings, demand for credit, etc...

I've always thought that it was out of line for it to be so volatile based on short term inflation numbers. I don't know enough to try to trade it though.

So I would say that it makes sense to me that the absolute movement of the bond hasn't been as large as the rise in inflation. However, I totally agree that 5.8 percent is not a good deal. I don't trust the government inflation figures, nor do I think Greenspan's "flood the world with credit" solution to every problem inspires much trustworthiness in the Greenback.

I haven't looked at the yield curve lately. I would think that the shorter end hates these inflation numbers.

Wayne