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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Tom Hua who wrote (6749)	4/10/1998 9:31:00 PM
From: Pancho Villa	Read Replies (1) \| Respond to of 18691

>What's your take on its impact on the bond market Monday, if any?< If you don't mind me to venture a wild guess, before I would like to be interested in knowing why is it that they are selling US dollars. They may be selling their US bonds [or soon will be] to get the dollars and then buying yen with the proceeds. Perhaps, the US wants them to support the yen as part of some agreement related to their current crisis... Now my wild guess, a naive one iteration type of an answer is that the yield in the bond should go up and thus the price down. I don't know if this would be significant though. My answer is based on the arbitrage that would require an equivalent return after the weakening of the dollar. pancho