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To: NOW who wrote (85149)3/25/2001 3:29:42 AM
From: Simba  Read Replies (2) | Respond to of 436258
 
The 30 year treasury yield in Jan 00 was 6.70 %. Noe it is at 5.25 %. The treasury has rallied nearly 21.6% in the last year. Sure the rally started much before the fed funds rate reduction, in Jan 00 when the fed was still rasing short term rates. How do you think the yield curve got inverted - a little bit of both, short term yields went up and the long term came down at the same time. Look at:

quote.yahoo.com

Sure beginning the date of the fed series of recent cuts in funds rate, the treasury has not rallied much, but it was already discounted in the move the previous year inversion.

Simba