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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Ross who wrote (21313)	11/11/1998 3:04:00 AM
From: IQBAL LATIF	Respond to of 50167

In my opinion long bond will test 124 area within next few weeks, we will see long bond yields moving higher after we test 130 fail and retreat.. Fed reasons to cut rates in my opinion is to restroe the normal looking yield curve the short end borrowing costs needs to come down where as like in normal growing economies we need to have the long end of the money reflecting the inflationary expectations. Will higher yields lead to market sell offs - initally yes every time we will have this strong number we will have these sell offs but markets were during this whole move down priced for much slower growth the markets will certainly appreciate the strength in economy. We can have DOW at 9000 and yieds at 5.5% with short end reduced by another 50 basis point that is the kind of picture of the yield curve I think will be representative of the present state of market..