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

To: Bonnie Bear who wrote (20443)	2/18/1999 7:40:00 PM
From: John Pitera	Read Replies (1) \| Respond to of 86076

.back in the 70s, I'm told, something called an inverted yield curve was normal...that's when money-market gives you a higher return than bonds,>>> Bobbie when I was working for Citibank In Australia in the mid '80s the Ozzies had an inverted yield curve for several years.... the 90 day bills were 600 basis points higher than the 10 yr bonds this can also occur if your currency is under attack....as you have to pay points every day you are short a currency that has higher shorter term rates than the currency you are long. So if the currency you are short does not decline you are losing money on your position every day. If an inverted yield curve shows up in the future....$ weakness may be part of the reason.