RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

June Bonds finished up 1-190 at 155-020, 0-140 off the high and 1-870 up from the low.

June 10 Yr Treasury Notes closed up 0-594 at 126-500. This was 0-688 up from the low and 0-125 off the high.

In addition to significant weakness in US equities, the Treasury market continues to benefit from expanding geopolitical anxiety in France and the Euro zone in general. With another Fed President in favor of reducing bond holdings at the Fed later this year, Treasury prices could have faltered but instead the trade continues to take its direction from near term issues. In fact, the market has all but discounted news over the last 24 hours that foreigners were lowering their treasury holdings. While it would seem unlikely, today’s sharp decline in housing starts
seems to take precedence over the rise in permits and favorable industrial production/capacity utilization readings.

Hightower Report