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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 (18031)	8/24/2004 9:41:31 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

Today's setup means they expect flattening of the yield curve. Not good for carry trade I did a post somewhere not too long ago that suggested the spread between the 2 and the 5 would narrow, the spread between the 5 and the 10 would narrow, and the spread between the 10 and the 30 would narrow. Is this what happened in Japan as rates slowly fell to 0? You all know my position here I think. If not here goes: we are seeing a slight inflationary uptick on a long path of defaltion. Rates awill slowly fall to zero and the carry trade wil be mostly wiped out by virtue of narrowing spreads across the board. M