> pms wrote:
>
> >First, the effect of Japan repatriating cash, and being absent from bond
> >offerings, which I imagine has SOMETHING to do with bonds being trashed.
>
> Looks that way, doesn't it? But we won't know for sure for months.
>
> Doug
I posted the following on February 19, 1999 on another list:
A Singapore analyst, Larry Wee, wrote on February 10, 1999: "The current Treasury note and bond auctions in the US are going to be a disaster. Their biggest buyers, the Japanese, are not interested, we were told.
Japanese banks have up to Feb 15 to qualify for capital transfusions from their government. They have decided, it seems, to take a mega-hit on all their bad loans this fiscal year -- and then start out with a clean slate and fresh capital from April. The conclusion:
Massive repatriation of Japanese assets overseas till March 31. US bonds will collapse, their yields explode, and the Dow falls freely."
Henry