Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Chip McVickar who wrote (1454)	4/5/1999 7:16:00 AM
From: Henry Volquardsen	Read Replies (1) \| Respond to of 3536

Chip Another thing to keep in mind is that the first quarter is generally the largest funding period for the Treasury. Taxpayers file for refunds early and those with taxes to pay, delay. So, while the Treasury was issuing additional debt to raise new cash in the first quarter, the balance of this year will see the Treasury retiring debt. That is the pattern we saw last year. So this reduction in supply will also help bond prices to rally. Also we haven't seen any significant selling by the European and Japanese central banks. The first quarter rise in rates was largely due to rates having gotten ahead of themselves coupled with the supply situation. Henry