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.

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

To: OX who wrote (3252)	2/13/2001 10:12:26 PM
From: John Pitera	Read Replies (2) \| Respond to of 33421

do you think the 30year buyback helped induce an artificial inverted yield curve of last year? (or was the inverted yield curve going to happen regardless of any 30 buybacks?) ?? I think the shorter end of the curve would have inverted, but the magnitude of the inversion between the 10 year note and 30 year bond was much much larger.In fact the 10 and 30 year probably would not have inverted. I don't think that the monetary tightening process was that severe. I'm confident that short rates would have still be higher than the long end of the curve, geocities.com I think that the budget surpluses going forward several years are already over stated due to the contraction of financial assets (stocks) and credit in the economy. We'll have to see how large of a tax package is passed, and also how much of the "additional surplus" is spent in expanded government programs. I for one belive, that the US Govt. will not pay down the debt, and to do so would be very deflationary in any event........ ask Yorikke, we have the research papers. :-) btw... this chart shows the shorter term 10 and 30 year spread geocities.com Some Technical govt bond traders are undoubtedly unwinding and putting on positions based on the 30-10 Year spread coming back to it's 50 Day SMA (simple moving average) John