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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: ballsschweaty who wrote (67834)8/20/2007 5:06:29 PM
From: Incitatus  Read Replies (2) | Respond to of 116555
 
Yes, people selling MMFs (thereby causing the MMFs to sell short-term Treasuries) and using that money to buy short-term Treasuries should be a neutral event. It's simply switching from indirect ownership to direct ownership.

It's not a flight to safety, it's a repricing of the securities based on likely Fed cuts.



To: ballsschweaty who wrote (67834)8/20/2007 5:08:22 PM
From: andiron  Respond to of 116555
 
i feel that too. 1 yr treasury rate drop is a temporary phenomenon.