for the last week the bond market has been telling us we r headed for a
correction it seems .this whole stock market rally has been followed by falling
bonds and now bonds r soaring higher at a very rapid rate.can anyone explain
this current action?? fed is not increasing its buying of bonds and there does
not seem to be a panic. yeilds r still historicly low and i find no reason why u
would be buying bonds here day after day.
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Bond rally is probably due to bond mutual fund inflows which have been pretty
high this month. Gotta window dress for your investors...
at heart i am a fundamentalist ,,but i see your point ,as i beleive that the
selling in bonds last 6 weeks was a bit to fast and now its balancing out.but as
a longer term veiw i still beleive that bonds will be junk and will only get
bids with much higher yeilds.there is still a hell of a lot of sideline money
thats going to come into stocks and we will see more pressure on bonds
well, im not shocked. you need to be in the head of a real money manager.
someone who is balancing a stock and bond portfolio. what they do when they have
gains in stocks and losses in bonds is sell some stock and buy some bonds to
rebalance (the opposite is also true). so now you see them moving back to bonds
and stocks stalling out.
what you, and so many who lazer in on 'the fundamentals', miss is that youre
talking about a BIG PICTURE event, i.e. bonds should be sold. theyre playing a
game of chess, youre playing a game of checkers.
it isnt one move and done for them. for the love of god, LEARN THAT.
good point, there was a lot of demand for all three auctions this week.
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