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

To: Davy Crockett who wrote (5037)	11/14/2001 11:44:14 PM
From: John Pitera	Respond to of 33421

sure thing Peter...... how is it that the US is getting rid of the 30 year bond, at just the time that the Govt is once again generating deficits. Should the US Govt be locking in very low long term borrowing costs currently? The fact that the US Govt has shortened the maturities of it's borrowings means that a future rise in the longer end of the yield curve should create an environment that when a much larger percentage of the total US Debt backed obligations mature. It could happen in a much narrower time window. If these need to be refinanced in a narrower time window, when borrowing costs are higher, it would create a greater demand and updraft in the cost of money (ie. interest rates) John