Appetite for Risk, New Debt Auction Weakens Treasury Bonds
T-Bonds are trading weaker this morning because of the firming equity markets and the $21 billion U.S. Treasury debt sale. There is also rising speculation that the Fed may be preparing to raise interest rates. On June 7th, Fed Chairman Bernanke said the Fed will hike before the economy returns to full employment.
Treasury Bonds Soar as Stock Market Jitters Drive Investors to Safety
Flight-to-safety buying drove June Treasury Bonds sharply higher. Thursday morning’s trading action took out the recent high at 124’16. Upside momentum seemed to be indicating that another surge was likely. The move in the T-Bonds looks more reactionary than speculative with investors taking their cues from the falling equity markets.
Flight-to-Safety Liquidation Drives Treasury Bonds Lower
June Treasury Bonds are trading sharply lower this morning. The newly proposed sweeping-aid package for the Euro Zone is helping to support the Euro and drive up demand for riskier assets. This is triggering a liquidation break in the Treasury futures markets. Last week nervous traders bought Treasury Bonds and Treasury Notes for protection in a flight-to-safety rally.
Treasury Bonds Rally Sharply Higher in Flight to Safety Rally
June Treasury Bonds closed sharply higher as equity markets collapsed and demand for safer assets increased. The rally early in the trading session sent yields plunging while triggering a breakout over the last main top at 121’05. T-Bonds began to break from the 121’14 high near the mid-session after triggering stops above the last main top at 121’05.
Geithner set for talks on yuan during visit to China
In light of the number of manufacturing and goods producing jobs lost in America over the past decade, it’s no wonder why many in Washington and on Main St. are clamoring for a trade and currency war with China. The raucous has grown so loud that Congress, Treasury and the Commerce department may soon be forced to declare China a currency manipulator.
Interview with Hank Paulson: Financial Crisis & On the Brink
March Treasury Bonds surged to the upside and erased all of Wednesday’s losses following the weak U.S. economic reports. Traders reacted to the possibility of interest rates staying lower for a long-time. Today’s Treasury bond action also went off without a hitch, generating more interest in the long side of the market. The charts indicate the next upside objective is 117’14.