Friday, July 22, 2005

China revaluing yuan

The news of the day was definitely China looseining the dollar peg (though not by a lot). This should lead to appreciation of yuan, and cause dollar to depreciate. This shouold help inch the 10 yr bond yields up as Chinese lower their appetite for US treasuries (why keep money in a weaker currency). Housing mousing should start cooling off a little bit...

When I was out of the markets, they went up, despite the London bomb blasts which killed 56 people. When I am back in, markets went down, despite the bomb blasts in London which apparently killed no one.. Microsoft has lowered guidance for next year, Google has missed on EPS.. That should be bad news for the market tomorrow

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