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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: StockOperator who wrote (12806)	5/4/1999 11:34:00 AM
From: Giordano Bruno	Respond to of 99985

U.S. 30-year bond down 1 point, yld at 9-mo high NEW YORK, May 4 (Reuters) - A combination of dealer and technical selling on Tuesday morning sent the benchmark U.S. 30-year Treasury bond down one point and its yield soaring to its highest level since late July of last year. Fears the Federal Reserve may soon need to raise interest rates and a heavy wave of corporate and agency debt issuance were cited as key reasons behind the sell-off. At 1055 EDT/1455 GMT, the 30-year bond was off its lowest levels, down 29/32 at 93-8/32. Its yield, which had jumped to 5.74 percent, was at 5.72 percent from 5.66 percent at Monday's close. The rise in the bond's yield surpassed its 1999 high of 5.72 percent set on March 4 and has now moved to its highest level since July 30, 1998. Traders said selling of bonds from a number of large dealers -- including Lehman Brothers and Goldman Sachs -- started the sell-off this sessions. When the June contract hit 120-2/32, traders said sell orders were hit, further exacerbating the downtrade. Talk of hedge fund and central bank selling were also cited as factors, along with fresh supply from Fannie Mae, Xerox and others. The rest of the curve was also hit hard, especially the five-year note. Since July, the bond's yield steadily fell -- hitting a low of 4.69 percent on October 5. Fears of a global financial market meltdown sparked a save-haven rally. But in recent weeks, surprisingly strong economic news has raised fears the Fed may need to hike rates.

To: StockOperator who wrote (12806)	5/4/1999 3:03:00 PM
From: Compadre	Respond to of 99985

SO: At this point all indexes are selling off. It is very likely that the NAZ and the NDX will be testing their respective 55 day EMA again soon. These marks are 2451 and 2076 respectively. The SPX and OEX appear to be trying to do the same. Regards, Jaime