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To: Lucretius who wrote (7087)	2/1/1999 9:36:00 PM
From: SJS	Read Replies (1) \| Respond to of 14427

LT, Your comment: [nobody has a clue why there is selling which means there's lots more on the way] Here's why: In economic news, a widely-watched survey of the nation's purchasing managers echoed the strength of Friday's fourth-quarter gross domestic product report. The National Association of Purchasing Management said its January manufacturing index rose to 49.5 percent from December's 45.3 percent. Most economists had eyed 46.0 percent. A figure above 50 relates to an expanding manufacturing economy; a sub-50 number indicates contraction. "Monday's NAPM report adds to mounting evidence that the manufacturing sector has bottomed," said Tony Crescenzi, chief bond market strategist at Miller Tabak Hirsch. "If so, then the economy is firing on all cylinders again. "This would spell trouble for the U.S. bond market which has been relying upon manufacturing to remain the weak pocket of the economy for much of 1999." The NAPM report dampened enthusiasm for bonds as the reality of a strong economy set in. A stronger pace of economic growth usually brings with it inflation pressures, which erode the value of a fixed-income security. In the bond market, the 30-year Treasury fell 1 13/32, to yield 5.179 percent.