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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 (66882)	10/20/2003 12:05:55 PM
From: Real Man	Respond to of 94695

Well, you can see - as rates rose, stocks fell during summer. Once they started stabilizing, stocks went up.

To: William H Huebl who wrote (66882)	10/20/2003 12:37:55 PM
From: Real Man	Read Replies (2) \| Respond to of 94695

I think they know how much they are printing, and that rates are rising, while the dollar is falling. So, they want to appear "in control", while supporting the dollar and bonds through Exchange Stabilization fund derivative plays. Apparently, wrong statement! So, they had to correct it -g-. The market did it for them, so they had to respond. From last week credit bubble bulletin: "The interest-rate markets were hit by a bit of reality this week. The December 2004 3-month Eurodollar yield jumped 36 basis points to 2.615%. The 2-year Treasury yield surged 23 basis points this week to 1.86%, the highest yield in more than one month. The 5-year yield jumped 19 basis points to 3.33%, while the 10-year yield increased 14 basis points to 4.39%. The long-bond saw its yield increase 6 basis points to 5.25%. Benchmark Fannie Mae mortgage-backed yields rose 12 basis points. The spread on Fannie?s 4 3/8% 2013 note increased 1.5 to 43, while the spread on Freddie?s 4 ½% 2013 note widened 1.5 to 42. The spread on 10-year FHLB debt narrowed 6 to 33. The 10-year dollar swap spread added 0.5 to 43.5." They know they will have to raise rates, or... Mr. Market will raise rates FOR them. Even worse, if Mr. Market thinks the Fed is behind the curve, it will raise rates quite dramatically! Cause... nobody wants to lose money on fixed income investments. I can't blame them!