The financial markets have been nothing short of a high speed roller coaster with light volume, earnings season and macro economic uncertainty as the culprits. Yesterday, investors staggered out of equities and allocated money into bonds and notes but today was the polar opposite. Today’s data was weak, but not enough to encourage more buying. […]
Treasuries soared overnight to fresh highs but were unable to hold the gains. The 30-year bond futures traded comfortably near unchanged for the majority of the session to make the last day of the second quarter a non-event. Payroll processor, ADP, reported that the U.S. economy gained only 13,000 jobs last month. This was a […]
Monday’s horrendous close had the bulls nervous and the bears salivating, but despite a lack of positive news or obvious catalyst Tuesday belonged to the bulls. I recently read an internet blog that shared the same pessimistic reality that I have spoken about in this newsletter from time to time. It stated that based on […]
An overdue recovery in the Euro and U.S. equity markets lured money back into risky assets and away from the safety of Treasuries. One day does not make a trend, but this seems to be the beginning of some attempt at “normalcy”. We have been getting solid economic news recently despite a few minor disappointments […]
Earlier this week we urged all of our clients to get flat Treasuries because things didn’t “feel” right and they still don’t. Treasuries have managed to maintain an upward bias in the face of higher equities (the few bounces that we have gotten), a recovery in the Euro, this signals that there are some behind […]
Bond and notes moved higher in early trade as equities struggled. After two consecutively strong Treasury auctions, and questionable fundamentals in overseas fixed income markets, the traders were anticipating strong demand for the 30-year. Lofty expectations seemed to have just set the market up for failure. In post-auction trade, the long end of the curve […]
The U.S. dollar might not have the strongest fundamental backing, but it is the best of the worst when it comes to representing stability. Accordingly, despite criticism of the Fed’s monetary policy and quantitative easing, when the going gets tough, money flows into the U.S. Treasury bonds and notes were a direct beneficiary of capital […]
The bid for bonds and notes heading into the weekend faded on Monday, but the day hardly went to the bears. Despite overbought technical action, higher stocks and good economic news, Treasuries suffered only moderate losses. The equity markets reacted positively to Greek debt bailout developments, but fixed income traders don’t seem to buy into […]
Bonds and notes moved higher into what could be a weekend packed with event risk. Ratings agencies have already marked down Greece’s debt to junk status and have downgraded that of Spain and Portugal. Some are waiting for an Italian debt downgrade. As a result, the relatively risk averse investment community is flocking to “quality” […]
As is often the case, it appears as though traders spent the day squaring positions ahead of the FOMC meeting. The Fed will meet tomorrow but we won’t hear the results of the interest rate decision until Wednesday afternoon. Most analysts aren’t expecting the Fed to take any action to change monetary policy but there […]
