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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 (81504)	5/4/2007 6:38:49 PM
From: bart13	Read Replies (1) \| Respond to of 110194

What kind of lags? Time lags, like the 11-12/2006 repo blast resulting in contributing to the USDX move from 83 to 85 in Dec 2006 and Jan 2007. The ones in January, May, June and August 2006 had similar results, while the ones in July and October failed from a correlation standpoint. Similar patterns exist in both 2004 & 2005 - less in 2004 than 2005 though. POMOs are not the only factor by far (duh - <g>) but a correlation or positive relationship does exist. The correlation with the stock market, at least the S&P 500, is a lot poorer than are POMOs and the USDX or POMOs and the 10 year T-bond... and the bond vigilantes seem to be hanging out in the saloons or red light districts or feeding at the troughs these days... at best. <g>