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To: Bobby Yellin who wrote (14225)	7/8/1998 9:18:00 AM
From: William JH	Read Replies (2) \| Respond to of 116767

Bobby - The current EE savings bonds in effect today pay 90% of the average yield on 5-year Treasury securities for the preceding six months. It doesn't appear that the new bonds will be much different.

To: Bobby Yellin who wrote (14225)	7/8/1998 4:29:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116767

15% I guess that removes any chance for likes of ABX to hedge again at least in a near future...We shall now see if no further hedging and no ECB selling?!?...a mighty but confused sentiment should move one way or another...

To: Bobby Yellin who wrote (14225)	7/8/1998 7:36:00 PM
From: goldsnow	Respond to of 116767

POLL-Dollar to fall vs mark,yen in coming months 10:01 a.m. Jul 08, 1998 Eastern By David Stamp LONDON, July 8 (Reuters) - The dollar is likely to ease slightly against the mark but remain strong against the yen in the coming month before sliding against both in the longer-term, according to a Reuters poll on Wednesday. Economists and strategists said a Russian financial crisis would hit the mark only briefly and the dollar was likely to slip as concerns about the launch of the single European currency eased in the coming months. In the Reuters monthly foreign exchange poll, the median of 57 forecasts put the dollar at 1.8000 marks a month from now compared with around 1.82 on Wednesday. It would then fall to 1.7800 three months from now and 1.7250 in a years time. On the yen, respondents to the poll said that Japan would be forced to boost its domestic economy effectively sooner or later -- something economists have been saying for quite some time without anything materialising yet. But the yen was expected to remain weak at 140 to the dollar for the next three months compared with around 139.75 on Wednesday, before clambering back to 132 in a years time, according to the poll which was taken on July 6-7. Russia has unsettled the foreign exchange markets, depressing the mark because of Germanys close trade and financial links with the country. Sal Guatieri economist at Bank of Montreal in Toronto said instability in Russian markets would continue to affect the mark every now and then for some time, but not significantly. It would be just transitory impacts as were seeing right now, he said. Guatieri forecast dollar/mark at 1.80 a month from now and 1.76 in a years time. The mark would come under some pressure in the first quarter of next year, when he expected the Federal Reserve to push up interest rates by 50 basis points. Some other respondents also expected the dust whipped up by Russia to be settling in the next two weeks, allowing fundamentals to take over again. Tony Norfield, treasury economist ABN Amro in London, said the dollar was overvalued for a number of reasons, including the relative economic cycles between the United States and Europe. Up to now weve got a pretty strong US economy. Its pretty definitely going to decline in growth in the second quarter, he said, although he ruled out a U.S. recession. At the same time the German economy was picking up but more important was the performance of the 11 founding states of European economic and monetary union (EMU). With EMU due to be launched in less than six months, he said growth prospects for the entire euro bloc were even better than Germanys alone. Norfield said the dollar had been boosted by EMU jitters. The current level of the dollar against the deutschemark also prices in a fairly pessimistic scenario for the euro, he said. Without this, the dollar would be around 1.50-1.60 marks and he forecast the dollar would fall to 1.60 in a years time as these worries gradually eased. Economists continue to forecast the mark a year from now but in fact the euro will be the chief European trading currency by then. In the poll, the median of 47 forecasts was for the euro to be worth $1.11 from now, rising to $1.1380 in a years time. Norfield forecast a stronger euro, at 1.1810 and 1.2180 respectively. He argued that there would be a flow of funds into euros, whether it be into equities or bonds, as EMU was launched. Likewise, companies would move to euros increasingly for transactions out of not only existing European currencies but also dollars in some cases. Japan is expected to clamber gradually out of its problems. The Japanese would not sort themselves out but improve (their situation), said Philippe Delmonte, vice president corporate sales at Bank of Boston in London. Michael Rothmann, foreign exchange strategist at Bayerische Vereinsbank in Munich, agreed. Finally Japan must act and will act, he said. The level of around 146 last month will be a multi-month high ... I think we have seen the top, he said. Rothmann put the dollar at 135 yen a month from now and 130 a year from now. FOR DETAILS OF THE POLL PLEASE DOUBLE-CLICK ON (FOREXPOLL03) ((Polling unit ++44 171 542 4939, fax ++44 171 542 4939, polling.unit+rtrlondon.co.uk)) Copyright 1998 Reuters Limited