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Strategies & Market Trends : YEEHAW CANDIDATES -- Ignore unavailable to you. Want to Upgrade?

To: Galirayo who wrote (17204)	4/5/2006 12:19:54 PM
From: John Metcalf	Read Replies (1) \| Respond to of 23958

"inflation is close to being contained, hinting that the central bank may wind down its interest rate hike campaign." The Feds give themselves credit, but a concomittant development is that long rates will rise in the US because of the end of Zero Rates in Japan, with a consequent unwinding of the yen carry trade. FOMC doesn't have to do anything to accomplish this. A positive yield curve may develop because of less liquidity from Japan, allowing the US Fed to leave short-term rates in the 5% range, while market forces move long rates higher.