Looking at the September 10-year note this morning, we have seen the rally continue with note trading as high as 133-225 and a low last night at 133-065.  As chairman Powell has suggested all along he believes the rise in inflation that we have seen in the past few months, including the big rise last month in the CPI index, should subside and he continues to see the push higher in commodities as transitory. We have certainly seen the price of grains fall back rather substantially. Lumber, which was making all-time highs two months ago, has given back at least half of its gains. Another market that has been on a tear lately has been the price of oil with WTI for August hitting $76.98 a barrel yesterday. This are ongoing talks with OPEC+ about the hope of pumping more oil to halt this commodity from getting out of control.  As of yesterday, a few countries are having a hard time agreeing on the amount of production increases there should be and due to the inability to come to an agreement we saw the big spike yesterday. Currently, we see Aug trading at 7180, so were down about $6 from yesterday’s high. Hopefully OPEC will get a deal done soon as something may be in the works behind the scene.

10yr Note Sep ’21 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