RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Looking at the September 10-year note, yesterday’s move was significant in terms of breaking the recent uptrend. We had a high yesterday of 139-30 and a low of 139-07 and settled at 139-075. Today’s action is negative with the contract making a lower high, 13916, and a lower low at 139-00, and is currently trading at 139-045. A number traders should be focused on is 139-04 which happens to be the 50-day moving average. A close below the 50-day moving average would be deemed negative.  As I have written in the past, of the money being printed by the Federal Reserve has really hurt the dollar and at some point, will create inflation. The big problem that the Fed has created by printing all this money is the fact that they want rates near zero, which will in turn encourage individuals to borrow and increase spending. They are doing this for the purpose of propping up the economy. However, one has to worry if rates start to go up and the economy is still underperforming because of the virus, the Fed might in turn panic because inflation in this type of environment will kill any hopes of a V-shaped recovery.

10-Year note Sep ’20 Daily Chart
800-826-2270312-373-5323Series 3 Licensed

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.
Read More