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DlphcOracl

09/20/03 5:57 PM

#153205 RE: TJ Parker #153200

TJ Parker: Regarding bonds.....

The long-term 5-and 10-year rates may have peaked, but this is only (imo) on a ST basis. However, from a secular, multi-year point of view, bond yields have put in an important low in June and will steadily work their way higher over the next 3-5 years. If bonds retrace some of their recent sharp spike in yield, they will NOT get anywhere near the 3.2% yields they hit in mid-June.

Someone may want to play the ST top in bond yields for a quick trade, but why bother ---- more trouble (and less return) than it is worth.