RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

June Bonds finished up 0-120 at 149-150, 0-010 off the high and 0-930 up from the low.

June 10 Yr Treasury Notes closed up 0-156 at 123-656. This was 0-375 up from the low and 0-016 off the high.

Despite a slight amount of bargain-hunting yield buying at the end of this week, the charts in the treasury market look vulnerable. In perusing a number of Fed speeches today it would seem like the Fed is aware of the forward progression in the economy and they are starting to exhibit concern about getting behind the curve. One also has to think that Treasury bulls will remain fearful if US equities recover next week as that could keep up the pressure on the Fed. An issue that probably Treasury prices under pressure today is a 1.1 uptick in US ISM February non-manufacturing PMI figures. The Fed’s Fischer might have cushioned prices today by suggesting that Fed isn’t likely to take extreme positioning because of policy committees while the Fed’s Bullard added that conditions hadn’t changed markedly enough since January to justify a March rate hike. The Fed’s Yellen also added to the hawkish dialogue today by suggesting that seeing current conditions in place into the March meeting would justify a rate hike.

Hightower Report