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To: Zardoz who wrote (27593)	2/2/1999 4:51:00 PM
From: Cynic 2005	Read Replies (1) \| Respond to of 116791

<<I still see the big correction occuring in April, not now. Think the funds will run the markets before fund season occurs. It's in their best interest to flood the money into the markets. >> H, It is also in the best interest of the funds for the markets to continue to go up forever. Why stop with April? If only they can do keep the markets up forever! I don't think they can. None of the street smarts work for "make the other guy rich" charity. If some of my shares appreciated 100% in short order, I will at least pull some of the money out - regardless of my short-term perception of the market. If things like breadth, bonds, $ etc are bothering me more, i will take more moeny out. It sounds logical to me. The question is, the profit muscle is at the base of the pyramid (those who bought at very low prices.) When this base is tempted to shift, the whole pyramid collapses. So, IMO, The sentiment to watch for if the urge to take serious profits.

To: Zardoz who wrote (27593)	2/2/1999 5:09:00 PM
From: Bobby Yellin	Read Replies (2) \| Respond to of 116791

Hi Hutch Just realized in a convoluted way that if gold were just another commodity why are the central bankers making such a big deal of unloading it..is that the only thing they can sell? ps heard on CNN about emerging country victims are paid five cents to sew a shirt and then the shirt retails for 30 dollars ... interesting how Central Bankers keep on focussing on selling gold but don't focus on little matters like five cents a shirt..etc ps the show mentioned those dear old comglomerates just heard on cnbc now how another commodity market will be tightly controlled.. wonder why the Central bankers aren't concerned about that..maybe they are just concerned with their own shirts :-)

To: Zardoz who wrote (27593)	2/2/1999 7:08:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116791

Top Financial News Tue, 02 Feb 1999, 6:55pm EST Yen Jumps 2.5% Against Dollar; High Japanese Yields Seen Luring Investors Yen Jumps 2.5% Against Dollar on Rising Japanese Bond Yields New York, Feb. 2 (Bloomberg) -- The yen surged 2.5 percent against the dollar, its biggest one-day gain since Oct. 15, on expectations surging Japanese bond yields will attract investors. ''If you're a foreign investor and you thought yields had peaked, you'd be interested'' in buying yen to buy bonds, said Eric Nickerson, global head of currency strategy at BankAmerica Corp. ''There's a relatively high yield in Japan and, if rates start to go down, you'd have a capital gain and that would be all right too.'' The yen gained for a second day, rising as high as 111.95 yen from 114.96 late yesterday. In late New York trading, it was quoted at 112.15. It also advanced to 127.20 per euro from 130.12, while the European currency gained against the dollar to $1.1342 from $1.1309. Japanese yields climbed after Finance Minister Kiichi Miyazawa said he was satisfied with a recent rise in long-term interest rates. The yield on Japan's benchmark No. 203 bond maturing in 2008 rose 27 basis points to 2.30 percent, the highest since the bond was sold in March. Money is already flowing into Japan in the form of repatriation, buoying the yen as companies bring money home to boost profits before the end of Japan's fiscal year on March 31. Analysts said the higher yields are accelerating that process by encouraging companies to buy bonds with their cash, while banks are repatriating more money to cover losses suffered on bond portfolios as yields rose. ''With higher long-term interest rates, there's more potential for repatriation,'' said Jane Foley, a currency strategist at Barclays Capital in London. ''This will help strengthen the yen.'' Climbing Yields Japanese bond yields have almost doubled in the past two months, reducing the premium investors get for buying U.S. bonds to 265 basis points. Since reaching a record low in October, the benchmark yield has more than tripled, rising 161 basis points. Bonds with maturities of 10 years and longer declined 11.8 percent since the end of October, delivering the worst performance among major bond markets. The yen was also boosted after Eisuke Sakakibara, Japan's vice finance minister, said he's concerned ''political issues like trade friction will grow substantially'' this year. That may lead Japanese officials to allow the yen to rise to placate the U.S., economists said. A stronger yen would make Japanese exports more expensive overseas, giving some U.S. manufacturers an advantage over Japanese rivals and cutting Japan's trade surplus. ''The feeling is that the U.S. will want a weaker dollar, even though no one has suggested that in the U.S. administration,'' said David Brickman, an economist at PaineWebber International in London. Not so, says U.S. Treasury Secretary Robert Rubin. He said today the U.S. supports a strong dollar and vowed not to use the dollar as a tool of trade policy. U.S. currency policy remains ''absolutely unchanged,'' Rubin told reporters after testifying before the Senate Finance Committee on President Bill Clinton's budget plan. 'Today's Your Opportunity' Jeremy Fand, a currency strategist at BankBoston, said his recommendation to clients this morning was to buy dollars and sell yen. ''Today's your opportunity'' to buy dollars at a cheap rate, Fand said. ''The economic data out of Japan is overwhelmingly bearish, and the financial system has $600 billion in bad debt.'' And while Nickerson at BankAmerica expects the yen to break through 105 to the dollar as companies repatriate before the fiscal year ends, he doesn't recommend buying Japanese bonds. ''The Japanese government is going to be in the market for a lot of debt'' to recapitalize its banking industry and put its economy on the path to recovery, he said. ''Yields are going to go up even more. This is a bear market'' Takanobu Igarashi, market economist at Sanwa Bank, agreed that investors aren't yet ready to bank on Japanese debt. ''Higher yields mean a stronger yen -- that's the market's instant reaction,'' he said. ''This won't continue for long.'' In other trading, the euro gained against the dollar on expectations the European Central Bank will leave interest rates on hold Thursday. U.S. Federal Reserve policy makers, who meet today and tomorrow, are also expected to keep rates unchanged. Wim Duisenberg, president of the ECB, said over the weekend that he won't give in to political pressure to lower Europe's 3 percent benchmark interest rate and that while he expects some slowdown in European economies this year, there will still be ''satisfactory growth.'' The U.S. target fed funds rate is 4.75 percent. Elsewhere, the British pound slipped to $1.6391 from $1.6421 yesterday. The dollar dropped to 1.4148 Swiss francs from 1.4209 and gained to 1.5145 Canadian dollars from 1.5076. bloomberg.com