Report - Bonds and money (February 2008)

1. Interest/exchange rate forecasts and economic and financial outlook

2. Forex market
(1) USD/JPY: USD/JPY and the growing concern about a US economic slowdown (Page 4)
(2) EUR/USD: roiled by outlook for US economy (Page 8)
(3) GBP/USD: excessively weak pound likely to correct (Page 12)

3. Japanese economy and interest rates: market sentiment is more bearish than conditions warrant (Page 14)

4. Central European economies and interest rates: long-term interest rate differentials are widening (Page 19)

The text above is a synopsis and is not a substitute for the full report. For analyst certifications and important disclosures, please see the final page(s) of the attached report.