Date: Sat, 25 Oct 1997 12:27:59 -0500
From: Doug Henwood <dhenwood-AT-panix.com>
Subject: Re: M-TH: Another memorable October?


Rob Schaap wrote:

>If this ploy were used in significant numbers, would this not contribute to
>a decade cycle?  I mean, when all those '87 bonds matured, the money would
>have to be found to cough up, wouldn't it?  This could cause huge borrowing
>pressures, associated downward pressures on currencies, concomitant
>interest rate hikes, the cashing-in of stock, and so on.

Who holds bonds for 10 years - or 10 months even? The average holding
period for a long-term U.S. Treasury bond is 3-4 weeks. This average is
pulled down by the vigorous trading of speculators, but even "long-term"
holders of bonds, like pension funds and insurance companies, move in & out
of the instruments from quarter to quarter.

Doug





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