RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Looking at the June 10-year we have saw an overnight high of 132-18 and a new low this morning of 131-29, we are currently sitting at 131-30. Some noteworthy events have happened, including last Friday’s non-farm payroll which came in way under estimates and ignited a sizable rally in the treasury market.  But, the treasury yield has since rallied significantly this week on fears of inflation. All one needs to do is look at what the grains have been doing over the last few months.   Nothing but straight up. Continued buying from China is certainly reviving the one word that makes treasuries most vulnerable and that is inflation. Go to the local grocery store and see the elevated prices of food that contain grains in them. Prices have gone up considerably in the last few months. In addition to the treasury market, the stock market has been battered this week as well, especially the Nasdaq. If yields continue to rise, it could be a tough go ahead for stocks in general but banking stocks should perform well in this type of environment.

10-Yr Note Jun ’21 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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