Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (253678)	8/2/2003 2:40:01 PM
From: Haim R. Branisteanu	Respond to of 436258

By some measures the volatility is the worst since the crisis of the huge hedge fund Long-Term Capital Management in 1998, when it was forced to liquidate its big leveraged positions that brought markets to a near standstill. Rumors have circulated of other banks and hedge funds in trouble. The wreck in Treasuries began just six weeks ago and accelerated after the Federal Reserve began to play down the risk of deflation and the possibility it would buy government bonds as a way of conducting monetary policy. Benchmark 10-year yields have spiked a whopping 1.5 percentage points -- and much of the ongoing rout can be blamed on the mortgage market, whose hedging needs overwhelm the U.S. government bond market and have in recent years exacerbated interest rate moves. After falling all the way to 3.07 percent on June 13, U.S. 10-year yields soared to 4.57 percent before settling late Friday at 4.40 percent. reuters.com