John Ryding People Quotations

We are going through a period of weakness in March and toward the end of February. And that relates to things like Japanese (fiscal) year-end and a few other technical factors. I think getting on the March 30 FMOC meeting, the Fed (will do) nothing that reassures people . . . and I think we set ourselves up for an April bond rally.

This means people will be able to go out and refinance their house where they may not have been able to do before and I think that we have to remember this isn't over. I suspect the Fed will cut rates again in November and that will continue to keep a lid on borrowing costs and hopefully will compensate for some of the lack of credit flows to corporations that problems in the bond market have caused.

I think we've moved beyond the 'flight to quality' stage. People are really looking at the inflation fundamentals.