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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
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