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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Enigma who wrote (965)	10/29/1998 1:03:00 PM
From: Paul Berliner	Read Replies (1) \| Respond to of 3536

If 10% or even 5% of all MMF Paper & Tbills were dumped on the market the longer maturities (2 year notes, etc.) would obviously slide in tandem. Since when does action at one end of the yield curve not have an effect on the other end? also, who will be bidding on these massively liquid instruments if in late Dec. they all try to sell at once? Some sort of mega-repurchase ageement must be worked out between the gov. and the top 5 banks (which control most of all national deposits) Bankamerica-Nationsbank, CitiCorp, Chase, First Chicago/BancOne. Why would any bank be bidding or the paper when they all have to raise cash in a hurry?