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To: Tom Kearney who wrote (42599)	2/25/1999 4:31:00 PM
From: Oeconomicus	Respond to of 164684

OT: Good points re Treasuries, Tom. Right now, Treasury should be running a deficit while waiting for April 15 to roll around (if you owe, you wait 'til the last minute). Good buying opportunity for bonds, IMO. The Fed won't be raising short term rates any time soon. Japan still weak, especially corporate profits, Brasil slipping further into recession, and didn't Germany report negative real growth for Q4? With no signs of inflation here, the Fed can't raise rates and, with the gov't in surplus and April approaching, the supply of paper will be shrinking shortly. Regards, Bob

To: Tom Kearney who wrote (42599)	2/25/1999 7:09:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

I'm no expert, but they sell these bonds to private investors, institutions, insurance companies, banks, etc, at an auction. Even though there is a surplus, cash flow requirements generate these sales. Old bond issues expire, and must be rolled over. Also, the treasuary gets it's money in spikes. It runs a deficit many months, even now. Tom, We are into an area that I do not believe I know a lot about. I do believe the money flow is a problem of sorts this time of year. The IRS is mailing out tax refunds and that will occur until April 15th. On the other hand, those that owe taxes, will wait until April 15th to pay.