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To: NOW who wrote (85201)3/25/2001 8:11:31 PM
From: Simba  Respond to of 436258
 
Davidd:

I was only retorting to your remark the long end has not recovered significantly. I would say 22% in a year is a pretty good move for bonds, we are not talking dotcoms here.

Anyway as to whether it indicates that the markets believe that Greenie will successfully reflate, The movement of the yield curve seems to suggest that. As I mentioned in my other post where I quoted Bill Gross (who thinks the same about the bond market) my opinion is that the long end has done most of its recovery given the short term.

If we enter a full fledged crash and severe recession then all bets are off and currently the markets and most experts (bond and equity) are not expecting it.

Thanx for your comments.

Simba