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

To: Real Man who wrote (71274)	10/7/2006 12:10:25 AM
From: bart13	Respond to of 110194

Stocks are nothing. Not difficult to ``manage' through the futures. Bonds - a different story, as Russ posted today. That's a 300 Trillion notional value derivatives market, much, much bigger than the Fed. I'm not sure what you're referring to that Russ posted, and I'm also not saying that either the Fed is anywhere near omnipotent nor that they can fully control the bond market... but, check out the track history of their Securities Lending operation and notice how changes in it precede changes in the 10 year rate: As an aside, that $300 trillion derivatives market notional figure is highly leveraged so small changes in the underlying rate can create changes in it regardless of how much bigger than the Fed it is. If memory serves, the actual figure is under $25-30 billion but its been a long day.