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To: Patrick Slevin who wrote (39384)	4/13/1998 9:15:00 PM
From: ViperChick Secret Agent 006.9	Read Replies (1) \| Respond to of 58727

is there anything going on in the currency market that could make a difference

To: Patrick Slevin who wrote (39384)	4/13/1998 9:20:00 PM
From: jluker	Read Replies (3) \| Respond to of 58727

Patrick, does this help any? Updated: 13-Apr-98 Moving the Market: Dollar-yen below 130.00 following more BOJ intervention Friday. Fed sells $12.1 billion worth of bills on behalf of customer (guess Japan). Close Monday: 30-year: -23/32...5.933% At about 09:42 this morning a New York Fed spokesman announced that the Fed was to conduct a customer-related market transaction. Does anyone remember the last time that happened? Right. And that is why no one saw this one coming. Later we would learn that the Fed sold $12 billion in bills (the whole bill curve) on behalf of a customer. The Fed said the customer would remain unnamed. But tight Fed lips notwithstanding, it took no time at all to finger Japan as an obvious choice. The Bank of Japan intervened heavily to snatch up yen last week (perhaps as much as $20 billion worth), and the Fed sale yesterday was seen as partial payment for its spending spree. The market was already under water as the Fed announcement came, and selling accelerated on the news. Traders are frightened by the possibility that Japan will sell more Treasuries to finance yen buying, especially if the BOJ tries to keep dollar-yen for an extended period of time. The G-7 meeting, which begins on Wednesday, could help clear up the matter (the BOJ has a much greater chance of keeping dollar-yen below 130.00 if the other club members voice support for the move). Bills got hammered--check out the big blue bars on our Charts & Data page for proof. The yield on the three-month bill rose to 5.163% from 5.051% Thursday and the six-month rose to 5.294% from 5.201%. The two took a beating too; yield there rose to 5.558% from 5.490%. There were no speakers and no data today, but talk about Fed policy abounded nonetheless. Over the Wednesday-Thursday period no less than three Fed Governors (Kelley, Meyer, and Phillips) expressed the sentiment that when it comes to the Asian crisis, the bark has proven much worse than the bite. The market is finally realizing that these Fed comments may actually mean something. Tomorrow delivers Retail Sales and CPI data. GovPX reports that $68 billion worth of Treasuries traded hands today, huge volume for a Monday (and even more impressive given that most of Europe was shut today).