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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: jtech who wrote (39673)	5/16/2001 4:50:44 AM
From: IQBAL LATIF	Respond to of 50167

<Don’t bond yields increase as equities decrease? > This is in case of flight to quality, this is what yield curve theory is all about, from a inverse yield curve to a normal looking upward sloping curve that is reflective of a market that expects economy to expand. If bond yields continue to increase than inflation would be in sight that would mean demand would be increasing, for that industrial production, cap utilisation and NAPM all would come out of present ranges. Of course expanding economy will corporate profits, the whole issue rests on ability of a country to produce a non-inflationary growth path for its economy to flourish.