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To: Lucretius who wrote (22640)	3/2/1999 10:17:00 AM
From: John Pitera	Read Replies (2) \| Respond to of 86076

Briefing.com folks are bullish on Treasuries....John Berry of the Was. Post wrote a analysis of AG's speech. complete with a Bullish take. Bizarro LT on fire..... 07:20 ET: 30-year: +2/32...5.570% Most of our readers are all too well aware of our fairly bullish outlook for the Treasury market. Last week we remained steadfast in our view that Greenspan's Humphrey-Hawkins testimony was at worst neutral for the market, while many analysts and traders jumped on the tightening bandwagon. Of some consolation was an article in Saturday's Washington Post in which John Berry suggested that such talk of the Fed moving to a tightening bias was largely unwarranted. In the wake of the Humphrey-Hawkins testimony, we suggested that Greenspan may have hinted at some fundamental shifts that were taking place in the economy, particularly the idea that the US economy may be less-inflation prone in the past. Berry highlighted the same excerpts of the testimony that we noted last week, and made the following argument, with which we agree completely: "Now, Greenspan and some of his colleagues have become more confident the economy has changed in more long-lasting ways that make a sudden, strong surge in inflation unlikely. To the extent that's true, Fed policymakers are more comfortable with the current low level of joblessness than would have been the case in the past, and therefore currently see no need to raise interest rates to keep the economy from overheating and generating more inflation."