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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (18829)	2/10/1999 9:51:00 AM
From: John Pitera	Read Replies (1) \| Respond to of 86076

Breakin' the Law..Breakin' the law...-G- We need to keep our eyes on the Global situation, particularly Japan and Brazil ----Japan big impact on our bonds. Brazil "The road to Hell is paved with Good intentions" PUNDIT CENTRAL MONEY AND CREDIT: "I think [Brazil] is an ongoing concern," says NICK SARGEN of J.P. MORGAN'S PRIVATE CLIENT GROUP. "I think the good news was last week with a good appointment of a new central bank government. That was a confidence bolster, but I think what we're seeing is the other side of the coin -- that the budgetary situation has continued to deteriorate with interest rates higher and with the weaker real making debt servicing costs higher." He says concerns about the strength of the government also is contributing to currency weakness. "I think there will be some regional locations, weaker growth in Latin America, but not the crisis type atmosphere of Asia, says Sargen. (CNBC "Street Signs", 2/9) DAVID GILMORE of FOREIGN EXCHANGE ANALYTICS says investors bought euros and shed dollars and yen amid reports that German government figures showed "a sharp decline in the level of unemployment. That gave the euro support against the dollar and the yen." (NYT, 2/9) "We had some help in the morning from the dollar and from weaker stocks and were able to reach the highs [in bonds] at that point," says JOHN CANAVAN at STONE & McCARTHY RESEARCH ASSOCIATES. "But we couldn't get any further and stocks came off of their lows an the dollar weakened against most currencies, although it remained stronger against the yen." ("Investor's Business Daily", 2/9) "A feeling of relief spread in the [currency] market following the fall in interest rates and the weaker yen," says YASUO UEKI at NIKKO SECURITIES in Tokyo. (NYT, 2/9) "It looks like some fund went in there and bought euro for yen based on the belief that a policy change was in the works in Japan," says KATHY JONES of PRUDENTIAL SECURITIES. (WSJ, 2/9) JOHN SPINELLO of MERRILL LYNCH GOVERNMENT SECURITIES says the failure of Treasuries to hold early gains Monday after last week's steady decline "basically shows the inherent weakness in the market and the reluctance of the investment community to chase prices higher in the face of an economy that continues to surprise. I think both the dealer and investment community are going to be cautious in bidding, given the somewhat critical technical levels that the market is at." (WSJ, 2/9) "It is normal for the market to correct somewhat after the sell-off we've seen last week," says DAVE CONNORS, head of government trading at CREDIT SUISSE FIRST BOSTON. (WSJ, 2/9) "There's not a whole lot of follow and there's not a sense of urgency behind bonds [ahead of the supply auctions]," says ROBERT WALTON at NOMURA SECURITIES INTERNATIONAL. (WSJ, 2/9)