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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (1406)	10/10/2003 11:56:32 AM
From: russwinter	Respond to of 110194

THE BIG SQUEEZE: I think this reports suggests pricing pressure is building at the raw goods level, and isn't being passed on at the finished good level. Similar to Contrary Investor's theory about the consumer being squeezed on costs, but not getting the compensating offset wages. I think the UST rise has nothing to do with this "report" and the conclusion of this writer, but with mindless Asian CB buying instead. Message 19389321 Treasurys rise after tame core PPI By Rachel Koning, CBS.MarketWatch.com Last Update: 9:39 AM ET Oct. 10, 2003 CHICAGO (CBS.MW) - U.S. Treasurys rose in an abbreviated session Friday after initially taking a step back on a report that showed stronger-than-expected inflation at the wholesale level but not within the less-volatile core rate. Treasurys were higher before the data, moved back to the even mark as the headlines rolled, then gained anew. But on a yield basis, the market is poised to close on its second losing week following six straight weekly gains. Yields have been rising amid signs of labor market improvement, the lagging sector of an otherwise stronger U.S. recovery. In recent exchanges, a benchmark 10-year Treasury note was up 10/32 at 99 30/32 to yield ($TNX: news, chart, profile) 4.26 percent vs. 4.30 percent at the previous U.S. close. Yields on a 10-year note were near 4.20 percent one week ago. The bond market will close one hour early on Friday and will not trade during U.S. hours Monday in observance of the Columbus Day holiday. Stock trade runs on a normal schedule Friday and Monday. On the data front, the producer price index was reported up 0.3 percent. Excluding often-volatile food and energy prices, however, the core rate of inflation was flat for finished goods ready for sale at retail. Read more. Economists had expected 0.1 percent gains in both the producer price index and in the PPI core rate, according to a survey conducted by CBS MarketWatch. See Economic Calendar. Low inflation levels have given the Federal Reserve wiggle room to leave borrowing rates at decades lows. Most economists don't expect a Fed rate change until at least half way through next year, although the bond market still responds to economic data that may prompt a response sooner than that. In a separate report, the Commerce Department said the U.S. trade deficit narrowed to $39.2 billion in August as both exports and imports declined. See full story.

To: ild who wrote (1406)	10/10/2003 1:51:01 PM
From: russwinter	Read Replies (2) \| Respond to of 110194

CFC is apparently a major short seller defaulting on a margin loan?: RealCommentary from TheStreet.com Shorts Default on Countrywide Loan Friday October 10, 1:41 pm ET By James J. Cramer, Oops, forgot to cover that Countrywide (NYSE:CFC - News). Didn't think it would hurt me that much. Thought it couldn't move like this. Darn it all. Yes, that's what's happening behind this incredible move in CFC, short-sellers who figured, naturally, that the mortgage-origination business has dropped off and therefore CFC must be a goner.