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.

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

To: Harvey Allen who wrote (69343)	5/10/2004 9:51:35 AM
From: Harvey Allen	Respond to of 94695

reflected the unwinding of the global carry trade, where investors of all stripes borrowed dollars at low rates to invest in riskier, higher-yielding assets. Among the latter were emerging debt, junk bonds, Japanese equities, gold and commodities, and these were now being sold and the dollars bought back to close positions. Traders suspected, then, that this might not be an auspicious time for the U.S. government to be auctioning $54 billion in new debt. Some $24 billion of three-year notes go under the hammer on Tuesday, with $15 billion each of five- and 10-year notes on Wednesday and Thursday respectively. ``This is not going to be the easiest Treasury refunding sale,'' said Chris Rupkey, vice president and senior financial economist at BTM, in something of an understatement. . . . Given all the negatives, he saw ``a risk that 10-year yields will move closer to 5.0 percent before the auctions are sold and successfully distributed.'' nytimes.com