An “OK” 2-year note auction and a lack of surprise in housing data left the Treasury market in familiar territory, near unchanged.
The government issued another $44-billion in 2-year notes at a rate of 1% and a bid to cover of 3; indirect bidders accounted for 34.8% of the participation. This auction suggests that demand for Treasuries might be slightly waning but it also lowers the bar for the upcoming issues and that could be near-term supportive.
Existing home sales came in at 5.02 million, a bit above expectations but slightly below the previous reading. Similarly, the FHFA home price index declined by .6% to surpass analyst estimates. The news was relatively neutral and thus, so was the market.
Neither equities nor currencies were able to give Treasury trade direction until late in the session. The financial and commodity markets across the board waffled near yesterday’s settlement prices to make for a dreadfully boring trading day.
Nothing has changed, we are sticking with yesterday’s chart work:
The June 30-year bond futures has resistance near 118’17 then again near 119. Support lies at, 117’03 and then again near 115’28. Note traders can look at similar upside levels at 117’22 then again at 118’01 with support at 116’08 and then again near 115’17.
* Due to time constraints and our fiduciary duty to put clients first, the charts provided in this newsletter may not reflect the current session data. However, market analysis and commentary does. Charts provided by Track ‘n Trade, Gecko software.
**Seasonality is already be factored into current prices, any references to such does not indicate future market action.
Treasury Bond and Note Option Trading Recommendations
**There is unlimited risk in naked option selling.
Treasury Bond and Note Futures Trading Recommendations
**There is unlimited risk in trading futures.
Senior Analyst / Commodity Broker
Local : 702-947-0701
*Due to the volatile nature of the futures markets some information and charts in this report may not be timely.
There is substantial risk of loss in trading futures and options.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.
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