|
PureBytes Links
Trading Reference Links
|
The bond market is looking for restraint (rally) and didn't get it
(sell-off). I don't believe you will see any relief in bond market until
equities reverse the parabolic.
Earl
----- Original Message -----
From: Mervin Yeung <tinyeung@xxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Tuesday, December 21, 1999 1:00 PM
Subject: [RT] T-Bonds
> Hi RTs,
>
> What has happened in the bond pits? Why were all the excitement?
>
> The Fed didn't raise rates, as expected. So, how could this create a
> very short-time surge in t-bond that ran to 92-05 (March)? If the Fed
> had raised rates, I would have covered my short positions. Because
this
> would have shown that the Fed had been very serious on fighting
> inflation.
>
> My personal opinion is that yen/USD cross is the key. As long as yen
> continues to go up, bond bears, like myself, shall have peace in our
> minds.
>
> Let me quote myself: "Therefore, the Fed has only 2 opposite choices:
> 1. Let yen take off and then the US T-Bond market will get smashed and
> US stock market bubble will burst right here. 2. Intervene the forex
> market with BoJ and ECB to suppress yen and increase money supply to
> jack up the stock market. (i.e. pump up the bubble to an even bigger
> size) From the Fed's past behavior, we expect the Fed to take the
second
> option. "
>
> http://skybluemonthly.freeservers.com/sbm/sbm99z.htm
>
> All of the above is for general information only, not for trading
> purpose.
>
> Mervin
>
>
|