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To: GraceZ who wrote (34649)3/20/2002 2:32:08 PM
From: patron_anejo_por_favor  Read Replies (1) | Respond to of 209892
 
Yes, I'd say they are connected now...short rates haven't been all over the map in the last year, they've been moving steadily lower (due to Pump Meister Al and his merry men), and long rates have not dropped (due to perception of inflation to come, as well as the perception that "recovery" was "just around the corner". Now that there ARE some tentative signs of recovery, coupled with clearly inflationary action in energy and the CRB, they will recouple....but since the Fed likely won't do anything until August or later (being the recidivist inflationists that they always are), it will leave plenty of time for the long bond to fall.

There are other Points of View on this, of course...<GGG>