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To: SilverAG who wrote (643)	3/28/2007 5:16:48 AM
From: maceng2	Respond to of 1718

Sounds kool to me, not sure if Au and Ag will say strong initially though, they would come back later in the scenareo imho. Inflation risk is indicated in UK (see below). ft.com Treasury traders await Bernanke testimony By Saskia Scholtes in New York, Paul J Davies in London and David Turner in Tokyo Published: March 27 2007 18:28 \| Last updated: March 27 2007 21:38 US Treasuries drifted in range-bound trade on Tuesday with investors cautious ahead of Wednesday’s testimony before Congress from Federal Reserve chairman Ben Bernanke, as well as an auction of $18bn of new two-year notes. Analysts speculated that Mr Bernanke’s testimony before the Joint Economic Committee might focus on clarifying last week’s Fed policy statement. This prompted many traders to stay close to the sidelines on Tuesday. The market was little moved by a weaker-than-expected reading on March consumer confidence, which was offset by an increase in consumers’ inflation expectations. The Conference Board’s index of US consumer confidence fell to 107.2 in March, down from 111.2 in February. However, one-year consumer inflation expectations rose to their highest level since October. By mid-afternoon in New York, the yield on the benchmark 10-year yield was up 0.4 basis points at 4.611 per cent. The two-year note yield was 0.5bp lower at 4.585 per cent. European government bonds also finished relatively unmoved in spite of a stronger than expected reading from the key Ifo index of German business confidence, which reinforced expectations of further eurozone interest rate rises this year. The Ifo hit a reading of 107.7 for March, up from the previous month and against expectations of a decline to 106.5. The two-year Schatz yield came down from earlier rises and finished up just 1.6bp at 3.976 per cent. The yield on the 10-year Bund made a stronger recovery, finishing just 0.3bp higher at 4.023 per cent. UK gilts suffered greater pain after comments from Mervyn King, Bank of England governor, saying that while the inflation outlook was uncertain, the risks were to the upside. The two-year gilt yield rose 2.5bp to 5.415 per cent, while that on the 10-year was up 2.3bp at 4.914 per cent. A fall in Japan’s Nikkei 225 Average pushed up the price of Japanese government bonds. The 10-year yield ended 2bp lower at 1.645 per cent.

To: SilverAG who wrote (643)	3/28/2007 2:37:08 PM
From: SouthFloridaGuy	Read Replies (1) \| Respond to of 1718

Though I don't agree with it all, very logical forecast. Been busy, will respond in depth this wk/end. Please participate more on the board.

To: SilverAG who wrote (643)	3/29/2007 12:21:52 AM
From: John Vosilla	Respond to of 1718

'Stocks move to new highs based on rate cuts and massive monetary reflation alone, not on fundamentals. The Fed's printing presses go into overdrive. It's an absolute crime, but this is what I see happening. With oil heading over $100 this year and the coming helicopter drop, inflation shows its teeth by year's end.' I love it...Lots of volatility. Housing continues down, stock market bottoms for good in the fall and we have a monster year end rally. Yield curve steepens dramatically by year end? All makes sense for the third year of the election cycle..