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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (64771)	7/15/2003 3:19:22 PM
From: Real Man	Read Replies (1) \| Respond to of 94695

Yes, they told they may cut rates again today, to save the bond market. But... Look at bonds and the dollar. Bonds are crashing, the dollar going up. Why? Well... Someone bought a lot of bond derivatives, and hedged against the dollar decline. That someone is now in deep doo doo. Derivatives dislocation, anyone? If rates rise further, it may cause some long-term treasury holders, such as the Asians, to sell them. When you see the dollar declining along with bonds, it would mean this process has started.