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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion. -- Ignore unavailable to you. Want to Upgrade?

To: Due Diligence who wrote (70420)	11/8/2000 2:45:22 AM
From: asker2	Respond to of 150070

Also...the bios...Bush is big on the biotechs.....eom

To: Due Diligence who wrote (70420)	11/8/2000 3:03:49 AM
From: Jim Bishop	Respond to of 150070

U.S. T-bonds call election right, bonds seen losers By Andrew Priest NEW YORK, Nov 8 (Reuters) - U.S. Treasury investors got it right, for once, having wagered that Republican George W. Bush would triumph in the 2000 U.S. Presidential elections. Investors have been selling longer-dated Treasury securities over the last two weeks, pushing up interest rates, and buying shorter-dated issues, betting that Bush's plans to cut taxes would undermine further paying down of the U.S.'s $3.4 trillion in publicly-traded debt. "The bond market was set up for a Bush win. A Gore victory has been a low probability trade," said Gemma Wright, fixed income strategist at Barclays Capital in New York. With fixed income investors having called the election right, Treasuries are seen as likely to trade in narrow ranges in coming sessions with longer-dated securities underperforming other issues as investors assess how much the Texas Governor's ambitious tax cutting plans will dent debt reduction. At 2:38 ET (0738 GMT), 30-year bonds were 21/32 lower at 104-9/32, yielding 5.94 percent. Two-year notes, which tend to benefit from stock weakness, fell 2/32 to 99-16/32, yielding 6.01 percent, as share futures rallied on hopes that a Bush tax cut will boost Americans' taste for equities. It was a heart-stopping ride for Treasuries overnight with bonds rising almost a full point in Tokyo trading as Vice President Al Gore looked to have established a solid early lead, before falling like a stone as Bush built up steam. In the end, Bush won, ensuring the Republicans controlled both the executive and legislative branches of the U.S. government for the first time since 1953-55. A Gore win had been viewed as the perfect scenario for Treasuries. But as Bush gained in preelection polls, investors shed bonds fearing his administration would loosen the budget reins more than his Democratic counterpart. "You have seen upward pressure on Treasury yields as people factored in a Bush clean sweep thinking he would be able to push through his tax plans fairly quickly and squander the surplus, which would mean less debt paydown," said Rory Robertson, strategist at Macquarie Bank in New York. Bush has promised some $1.3 trillion in tax cuts over 10 years and plans to privatize part of social security, which may hamper further debt paydown. Gore's proposal was to use budget surpluses to pay down the huge debt by 2012. "Gore was seen as accelerating the debt buybacks which would have helped longer-dated bonds and he was seen as bad for stocks which would have helped short-dated instruments," said a New York-based bond trader. TIGHT RACE, TIGHT REINS Still, the narrowness of the presidential and Congressional results was seen by market players as partially fulfilling Treasury market hopes for political gridlock, which will help to stem budget largess. "There is a winner, but with a pretty split Senate and House, this is not a winner-take-all election, which means it will be gridlock anyway," said Jim Glassman, senior economist at Chase Securities. All 435 House seats and 34 of the 100 Senate seats were at stake on Tuesday, with Democrats failing to pick up the seven House seats and five Senate seats needed to reclaim congressional majorities. To be sure, economists said, Bush's fiscal program will be put in place gradually over the next few years, muddying the effect of the election result on Treasuries. "People always knew that it would take a year to figure out the real impact of the election," said Glassman. "You may not notice anything if we get any major economic news." Treasury T-bond futures fell by half a point after U.S. networks called the election in Bush's favor. Thirty-year bond yields, which move in the opposite direction to prices, have risen twenty basis points, or 0.20 percentage point, in the last two weeks as Bush upped his showing in the polls. The U.S. Treasury market has tended to rally after U.S. elections with yields on 10-year notes falling 100 basis points, or one percentage point in the six months after President Bill Clinton's 1992 victory and by 130 basis points after Congressional elections in 1994, according to Barclays' Wright. Thirty-year bonds were the pick of the Treasury crop for much of 2000 as investors watched federal budget surpluses mount and bet that the government would be able to use these funds to cut deep into the national debt. The Treasury Department announced in January a stream of buybacks of its more expensive, older bonds as well as a sharp cutback in new issues. Issuance is down by around a quarter this year and the debt pile is $300 billion lower. Budget surpluses -- which hit $237 billion in 2000 -- are forecast by the nonpartisan Congressional Budget Office to total some $4.6 trillion over the next decade. But this estimate does not take into account presidential spending promises and relies on economic growth remaining sturdy. ((--U.S. Financial Markets +212 859-1867)) REUTERS * end of story *