The March 10-year note has seen an explosive move higher this week and yields approaching the 1.60 level. The move may be due largely on the continued Coronavirus headlines as the world waits and watches to see how exactly this extremely contagious virus spreads and the effects it will have on the world’s economy. 

Another important headline the market is facing happens later today when the fed concludes a two-day meeting on interest rates.   No move is expected but I believe Chairman Powell will be asked a very important question regarding the plans of the Fed on continuing to add to the balance sheet.   Since last September, the Fed has added to the balance sheet and some believe have created a massive bubble of inflated assets.  Looking at a technical picture of the 10-year note we have seen a move above resistance and with many of the retail public short the notes – this move may have more to go.   What’s interesting today, at least on the open of the stock market at 8:30am, is that both stocks and Treasuries were both up, but stocks have since turned down on $ Yen weakness

10-Year T-Note Mar ’20 Daily Chart
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Greg Perlin

Senior Market Strategist
Greg is a former Chicago Board of Trade member. He was an independent floor trader, pit broker and floor broker with Cantor Fitzgerald. Some of his clients included traders from Morgan Stanley and Lehman Brothers. He also acted in the capacity of desk manager for the morning trade desk. Greg was part of the elite Lind Plus Division for 10 years before joining RJO Futures in 2011.
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