Triple A & Government Series-1997.NEW YORK--(BUSINESS WIRE)--Aug. 1, 1996--Triple A and Government Series-1997 Inc. (AMEX AMEX See: American Stock Exchange :TGB TGB Tangentbord (Swedish: keyboard) TGB Très Grande Bibliothèque TGB Tiagabine TGB Telecommunications Grounding Busbar TGB Terrain Vehicle (Swedish military) TGB Taiwan Golden Bee Co Ltd ) ("TAGS97") is a closed-end management investment company investing in U.S. government securities and AAA-rated and comparable debt obligations in order to return to reinvesting shareholders $10.00 per share on its termination date termination date, n See expiration date. . As described in the prospectus, the termination date for the Series will be on or about June 29, 1997. While the portfolio is being managed in an effort to return the initial offering price of $10.00 per share, this is not guaranteed. SECOND QUARTER COMMENTARY During the second quarter, the economy continued to gain momentum, with sustained above-trend growth in domestic demand and heady growth in non-farm payrolls. The bond market's reaction caused yields to back-up almost 150 basis points year-to-date. The Fed will probably raise short-term interest rates Short-term interest rates Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. about 0.50 percent, with bonds risking another 0.30 percent sell-off. The secular backdrop that aided last year's bond market rally, however, remains in place--pointing to exceptionally good value at around these levels. The inflation outlook is benign, limiting the ability of corporations to pass through price increases and there is a labor force that is more fixated fix·ate v. fix·at·ed, fix·at·ing, fix·ates v.tr. 1. To make fixed, stable, or stationary. 2. To focus one's eyes or attention on: fixate a faint object. on job security than wage gains in a downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing environment. Furthermore, election year maneuvering aside, politicians of most persuasions are convinced of the merits of fiscal restraint. Going forward, our view is that although the economy will continue to expand, the second quarter's 4% plus growth rate is unsustainable. In approximately one year, TAGS'97 will terminate. Consequently, our portfolio strategy is to conservatively enhance yield via investments in securities with maturity structures similar to the portfolio's termination date. CONTACT: Linda Buckley 201/902-5450 |
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