Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Ahda who wrote (8235)	3/11/1998 3:52:00 PM
From: Richard A. Green	Read Replies (2) \| Respond to of 116815

I would think that selling bonds would depress their prices, resulting in a corresponding increase in the interest yield. According to Marty Weiss, the bond market has been declining since the beginning of the year, which drove interest rates up to 6.1% last week. He warns that Sakura bank holds $408 billion in us assets and bonds (larger than citibank!!) The bigger risk is the derivitives exposure of the large US trading partners (Chase, Morgan, Citibank, Bankers Trust, etc.) because the risk is so leveraged compared to their equity. Best wishes, Richard

To: Ahda who wrote (8235)	3/11/1998 5:34:00 PM
From: Bob Tate	Read Replies (1) \| Respond to of 116815

I'm more interested what will Japan do with sale proceeds holding such mount of US $. If Japan sells US bonds and : 1. Buys (converts to) yen to invest in Nikey as they stated . This will move yen up and reduce international competitive edge. This was not their option as of last year. 2. Buys gold. POG goes sky high. It was mentioned by them last summer. 3. Buys Euro. This will not effect yen or gold directly I think FEDS mentioned last year if there is such sale there would be enough new liquidity to absorb it. Simply saying they will print enough new $$ . IFLATION. This in turn may bring interest rate hike down the road. Make your choice.