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

To: donald sew who wrote (13209)	5/7/1999 4:53:00 PM
From: Sonny Blue	Respond to of 99985

>>like next weeks CPI/PPI.<< I think that may be what happens to the bonds today. The bonds discounted the good news in the job numbers and quickly focused on CPI/PPI numbers next week and decided it will not like them. With oil price has risen 50% from December and with weaker dollars (hence higher import prices at a record import/export deficit), it's quite predictable that CPI/PPI numbers will not be friendly.

To: donald sew who wrote (13209)	5/7/1999 9:25:00 PM
From: Daniel Joo	Respond to of 99985

Donald, IMO the selling pressure is exaggerated by the outflow of foreign dollars back to home markets. Foreign money inflow into treasuries reached highs during the East Asian, Russian, Brazil crisis - taking rates to the other extreme. Now that we are seeing improvements in these markets - especially east asian markets - are looking very attractive. The weak U.S. dollar strengthens my opinion on rising rates due in part by foreign money flowing out of the U.S. Of course the huge trade deficit doesn't help the dollar either. Any thoughts on potential foreign money outflow impacting U.S. equity markets? Dan