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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: robnhood who wrote (29275)9/28/1998 8:13:00 PM
From: Haim R. Branisteanu  Respond to of 94695
 
The long bond is 5.14% Fed funds 5.5% even if AG lowers 50bp the banks make no money as the spread will be around 10bp to 16bp with all the risk involved.

Establishing new positions or holding the 10 year treasury you are under water anyway, so no security blanket for the banks.

Until the securitized mortgages and other hedges will unwind the banks can not afford to enter the treasury market.

To me it smells that China may blow it now. Watch Hong Kong.

BWDIK

Haim