Looking at the March 10-year note, we had an overnight high of 129-00, a low of 128-14, and currently we are trading at 128-19. Overnight we saw the yield reach the highest we have seen since last March, 1.75% and lowest in price at 128-14. The big move we saw yesterday was in response to the FOMC minutes where fed governors were extremely hawkish(bearish) and reiterated their belief that we will see at least two rate hikes in 2022 and stressed continued concern regarding inflation. In addition to the big down moves yesterday we saw across the cure in treasuries, the Nasdaq composite was hit extremely hard, and it is highly correlated in moves in rates.  Presently, the 10-year has stabilized a bit which is also leading to a rise in the technology sector. As stated earlier, seeing the note hit 1.75 % overnight is a psychological level where we might stabilize and it wouldn’t take much to come down a bit, especially if Powell or Fed governors come on tape and say anything that might be construed as dovish.

10-Year Mar ’22 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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