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To: Sawtooth who wrote (20235)	12/22/1998 9:05:00 AM
From: Jon Koplik	Respond to of 152472

To all - O.T. -- Japanese bond yields (and another example of almost everyone in Japan doing the same thing (in financial markets) at the same time). Check out the following. (Bold print added by me). (Part in bold print is indeed unusual). Jon. December 22, 1998 Dollar Higher, Japanese Stocks Fall Filed at 4:27 a.m. EST By The Associated Press TOKYO (AP) -- The dollar surged against the yen Tuesday as President Bill Clinton appeared able to survive moves to impeach him. Japanese stocks fell amid concern about the effect of tumbling bond prices on bank earnings. The dollar bought 117.08 yen in mid-afternoon trading in Tokyo, up 2.18 yen from late Monday here and above its late New York level of 116.21 yen. The benchmark 225-issue Nikkei Stock Average plunged 373.50 points, or 2.64 percent, to close at 13,779.45. On Monday, the average closed down 41.34 points, or 0.29 percent. Price movements in all markets were exaggerated by the relatively small number of participants during the holiday season, forcing sellers to slash prices just to find buyers. ''Amid a thin trade the market is very volatile,'' said Yasuo Ueki, a general manager at Nikko Securities Co. The dollar recovered recent losses against the yen as Clinton's continued high popularity ratings helped markets there shrug off concern about Congress' impeachment proceedings. The Dow Jones Industrial Average jumped 85.22 points to 8,988.85. On the Tokyo Stock Exchange, the broader Tokyo Stock Price Index of all issues listed on the first section lost 16.66 points, or 1.52 percent, to 1,082.46. The TOPIX closed up 2.58 points, or 0.23 percent, on Monday. Share prices fell as declines in the bond market were seen hurting one of the few profitable operations at Japan's ailing banks: their bond trading desks. A prolonged downturn in particular would spell real trouble for Japanese lenders, said Yushiro Ikuyo, bank analyst at Commerz Securities in Tokyo. Prices of the most widely watched bond in Japan, the No. 203 10-year Japanese government bond, tumbled to 99.19 yen from Monday's close of 102.44. That drove up the yield -- which moves in the opposite direction of the price -- to 1.900 percent from 1.505 percent. Yields are up from historical lows of 0.695 percent just two months ago. Investors are worried that new bond issues by the Japanese government to pay for fiscal stimulus spending will cause a glut in the market, traders said. Making matters worse, investors have been spooked by reports one of the market's biggest participants, the Ministry of Finance's trust bureau, may curtail purchases. Copyright 1998 The New York Times Company