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To: wlheatmoon who wrote (18041)	2/4/1999 1:34:00 PM
From: Bonnie Bear	Read Replies (1) \| Respond to of 86076

There's a thing called a bond index fund, it's the bond-market equivalent of the S&P 500. schwab and vanguard have them. If you ask a 401k menu for "bonds" this is what you get. It has some laddered treasuries, gnma mortgage bonds, corporates, foreign, and high-yield. Right now the index fund is flat even though 30-year treasuries have backed up..the spread between the 30-year and everything else is huge. If you really really find a yield on the 30-year you want to lock in, and it's a tax-free account, buy zero-coupon bonds. There's a fund BTTTX that mimics this. Or buy thirty-year bonds if you think we're headed into deflationary recession. If you just want something that returns a little more than a money-market, the bond index with reinvested dividends ought to be OK. I just got some info on an Alliance Capital product ticker GSF...it's a government bond fund 2/3 treasuries 1/3 zeros 1/3 foreign...looks to me like their foreign holdings have probably been marked down as worthless already so it's safe to hold them :-) sometimes on CEFs there will be a big buying or selling spike so you kinda know when to hop on or off.