NEW YORK (MNI) – The following is the summary of the Ried Thunberg
short-term sentiment index, published Monday:

Short-term sentiment improved in the RT-ICAP money manager
sentiment survey for the week ending November 19. The end-of-December
index jumped to 49 from 46 last week. The end-of-June ’11 index was
again unchanged at 43. Twenty money managers controlling $1,192 billion
in assets participated in the survey.

Treasury prices fell over the week in volatile trading. President
Obama’s Asian trip was an unmitigated disaster. Ireland is being forced
to accept a financial rescue package it does not need yet in order to
hopefully contain the sovereign debt crisis before it moves to Portugal,
then maybe Spain, and possibly on to Italy. China imposed selected price
controls and raised reserve requirements.

The Fed, led by Chair Ben Bernanke, had to continue to defend QE2.
The fact that the U.S. economic data continued to improve did not help
its case. In pursuit of QE2 the Fed bought $30.9 bln of Treasuries over
the week. Given the uncertainty of the outcome of events and
crosscurrents traders moved to the sidelines and became defensive over
the week.

Money Manager Responses – General Market Sentiment

* A large majority (80%) of respondents felt that Ireland should
negotiate a financial rescue package even if the country does not yet
have a desperate need for funds. 20% felt that such action could wait.

* An even greater majority (90%) of respondents believes that the
Fed should halt the QE2 balance sheet expansion process before it buys
all $600 billion of Treasuries it has committed to purchase if economic
activity picks up significantly. Only 10% felt that the purchase program
should be completed no matter what.

Money Manager Responses – FOMC Policy

— 90% vs 91% last week expect no change in Fed policy at the Dec
14 FOMC mtg. 10% vs 9% expect the Fed to add to QE. 0% vs 0% expect
tightening.

— 90% vs 96% last week expect no change in Fed policy at the Jan
25-26 ’11 FOMC mtg. 10% vs 4% expect the Fed to add to QE. 0% vs 0%
expect tightening.

— 90% vs 91% last week expect no change in Fed policy at the Mar
15’11 FOMC mtg. 10% vs 9% expect the Fed to add to QE. 0% vs 0% expect
tightening.

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