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Re: None

Sunday, 01/27/2008 8:52:56 PM

Sunday, January 27, 2008 8:52:56 PM

Post# of 51804
Treasury Island Reversal


The 10 year US Treasury...

http://stockcharts.com/h-sc/ui?s=$TNX&p=D&yr=0&mn=6&dy=0&id=p75635173805

and the 30 year US Tresury...

http://stockcharts.com/h-sc/ui?s=$Tyx&p=D&yr=0&mn=6&dy=0&id=p75635173805

yields have made island reversals. They both gapped down one day and then gapped up the next. These were no little gaps either, indicating a decided change of investor mood. Yields should move sharply to double digit territory as expectations of a FED bailout mounts. The thing is, since the FED FOLLOWS the market, it will now have to start RAISING rates, and won't be able to afford a bailout.

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