Richard Gilhooly Quotations

With the market having failed to penetrate 3.65 percent, there is room for a backup into the 3.80's, perhaps as far as 3.90.

But certainly the numbers are weaker than expected, ... This is just one in a series of numbers which argues that the economy is decelerating rapidly.

Further flattening in the curve is likely ahead of two-year supply next week.

Greenspan will need to either confirm the 'patient' theory or ratchet up his view on jobs and the economy.

You have an economy that is mending itself with absolutely no inflation pressures.

There's no panic, most of the auction was hedged by dealers.

There's nothing surprising in this when you see day after day after day after day, 3,000, 5,000, 10,000 layoffs, ... So if anyone's shocked by this, they haven't been reading the newspapers for the past three months.

The statement following the meeting will be carefully scrutinized for any sign of future plans.

The (bond) market has a better tone to it.

The bond market got very oversold. To expect a technical bounce is reasonable.

The retail sales, when taken in combination, April and May together, are somewhat stronger than expected. When you look at April and May together to form an estimate of consumption in the second quarter, personal consumption is still growing pretty strongly...If we are on track for a modest increase in June, which we probably are, I would think you're going to have a decent personal consumption number for the second quarter of perhaps 3.0 percent.

The Fed now thinks they are pretty much at neutral, and there has to be evidence to suggest they actually need to raise interest rates.

You could see two-year yields spiking up to around 5 percent before the Fed is done.

The front end of the market obviously offers safety and relative certainty that yields are going lower.

The market will be looking for him to confirm what was priced in last week: that the Fed will stop a little earlier than we had thought.

The (job) numbers were very good for the market. They reduce the probability that the Fed will tighten aggressively.