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To: GROUND ZERO™ who wrote (23346)	2/9/1999 12:55:00 PM
From: SE	Read Replies (1) \| Respond to of 50167

Tom and I have been chit chatting about the bonds. I have a buy signal on them, came this morning at 125'05. I expected a pullback of sorts, maybe the gap to be filled, but it hasn't as of yet. I am starting to pay a bit closer attention to the bonds. I would like to get a solid system worked out on them.....

To: GROUND ZERO™ who wrote (23346)	2/9/1999 1:30:00 PM
From: Judy	Read Replies (2) \| Respond to of 50167

GZ, the markets are already in the midst of a healthy correction and showing respect to Greenspan prior to the Humphrey Hawkins testimony this week. With the perception that the Feds will be inclined to raise rates due to the unexpected numbers, fund managers are realigning their portfolios to manage risk according to the perception. Message 7679922 Fundamentally I don't see indications in the long-term that says inflation is a problem. So while the long bond may edge up due to the perception of an increase in interest rates, the budget surplus will certainly cap the long bond. With the largest budget surplus in history, the bonds just won't bust out far. Bottomline is that the market remains robost, I await the a/d to gradually improve as the market chops around for a few weeks. Will wait until after Greenspan speaks to initiate new positional trades.