Bonds continue to probe higher after gaining some confidence that the probe late last week to the downside has been soundly rejected. Reports over the weekend that the fed ‘s Fisher speculated on possible September surprise rate hike move didn’t phase the bulls. Neither has an eerily quiet stock market that refuses to rotate down. Nothing in fact seems able to impede buying in coupons as both markets seem to be able to elevate higher. Obviously fears whether or not fed moves in September seems to not matter much as the desperate chase for yields continues unabated. Big upcoming reports due are tomorrow’s PMI manufacturing releases around the globe , Thursday’s U.S. ‘s durable goods and Friday’s speech from Yellen wrapping up the Jackson Hole Wyoming conference. Not sure any of these news points will rock the current grind higher in financial markets as uptrend is very entrenched and regardless of all the upcoming uncertainties including turmoil in European banks and the U.S. election the trend remains higher. Strong resistance is at previous yield lows of 2.10 in the 30 yr. and 1.34 in the ten year. First resistance in futures at 174 in September bonds and 13308 in ten year notes. As long a grinding type slug higher continues hard to expect a reversal near.
Series 3 Licensed
Senior Market Strategist
Jim began his career back in January of 1976 at the Mid America Commodity Exchange, trading grains. He moved over to the Chicago Board of Trade in 1980 and started spread trading the then-new Treasury bond contract. Jim remained a local on the CBOT floor over the next 12 years, alternating between the soybean and bond pits. In the early 1990s he made the tough decision to move off the floor in order to build a brokerage business. In 1995 he joined Lind-Waldock. Many of his earliest clients remain active traders and those longer-term relationships are the best aspect of the job. Jim holds a BA in Economics from the University of Wisconsin-Madison.