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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?


To: Jacob Snyder who wrote (5099)12/9/2001 1:41:29 AM
From: c.hinton  Respond to of 36161
 
Perhaps it has to due with the profits and productivity cycle of the general economy. Long yields whent up while short yields
stayed low in that period 98-2000.With good profits and productivity it paid to borrow short and invest long in any old thing.Now with profits declining and former percieved productivity turning out to be an illusion that formula might spell disaster.
PS remember short interest rates are manipulated more easily than long rates so there is real distortion in the spread.
Just my armchair opinion.



To: Jacob Snyder who wrote (5099)12/9/2001 1:56:44 AM
From: t4texas  Read Replies (1) | Respond to of 36161
 
rate of change means nothing?

tbond futures declined from 110 to 90 in 15 months starting from october 1998. tbond futures have declined from 112 to about 100.5 in just one month from november 2001 to december 2001. based on your comments (conclusion?) the severity (slope) of the tbond's recent relative decline does not have any significance. is that correct?



To: Jacob Snyder who wrote (5099)12/9/2001 5:40:31 AM
From: Crimson Ghost  Read Replies (2) | Respond to of 36161
 
The 1999-2000 surge in stocks was a once in a lifetime bubble mania. Stocks got far more overvalued than ever before. Under non bubble conditions there is no way stocks can rise much further if bond yields keep surging.