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

To: Henry Volquardsen who wrote (1576)	5/18/1999 10:35:00 PM
From: Sam	Read Replies (1) \| Respond to of 3536

What you said implies something that I just don't understand. <<But I've been wondering recently if the strong growth in the underlying economy is providing such a strong magnet for investment flows that bond inflation premiums need to be higher in order to be competitive.>> Competitive with what? Or do you mean that demand for cash is strong enough to require (allow lenders to charge?) higher yields?

To: Henry Volquardsen who wrote (1576)	5/19/1999 9:17:00 AM
From: Chip McVickar	Read Replies (1) \| Respond to of 3536

Henry, >>But I've been wondering recently if the strong growth in the underlying economy is providing such a strong magnet for investment flows that bond inflation premiums need to be higher in order to be competitive. I agree with your comment....This accounts for the move to 5.9% But I would think international pressures and currency positioning cannot allow for bond much above 6%! Don't you think it would set off alarms all over the world by raising the value of the dollar? Chip