Bond Market Recap – 2/14/2017 | RJO FuturesPosted 02/14/2017 3:20PM CT |
March Bonds finished down 0-230 at 150-210, 0-960 off the high and 0-920 up from the low.
March 10 Yr Treasury Notes closed down 0-406 at 124-188. This was 0-219 up from the low and 0-438 off the high.
While rate hike talk from the US Federal Reserve Chair in her testimony to Congress wasn’t definitively hawkish, it was clear that the Fed is leaning in the direction of raising rates again. The Fed indicated they would vote on rate hikes in the coming meetings and with this dialogue followed a much hotter than expected producer price index gain, one could conclude that the Fed will have an incentive to move on rates next month. In conclusion, given inflation, Fed dialogue and the recent pattern of all-time highs in equities, a return to the late January lows might be in order for March bonds.