ALARON US TREASURY FUTURES REPORT 04/22/2009
ECONOMIC DATA 04/23/2009: all times EST
- 8:30 AM US WEEKLY JOBLESS CLAIMS (636 K), US EXISTING HOME SALES (4.7 M-RANGE 4.5 TO 4.9 M)
- 10:30 AM EIA INVENTORY REPORTS (NATURAL GAS)
- 1:00 PM 5 YEAR NOTE AUCTION ANNOUNCEMENT.
SUMMARY OF DATA
EIA INVENTORY NUMBERS (CRUDE +3.9 M, UNLEAD +802K, DISTILL +2.68 M CAPACITY UTILIZATION 83.7, UP 2.3%)
US TREASURIES FALL TO THEIR LOWEST PRICES IN A MONTH AS EQUITIES GAIN STRENGTH, SURPRISE BACK TO BACK RISE IN US HOUSING PRICES.
US TREASURIES continued to fall on Wednesday, moving through key support levels, as a report showing the first monthly back to back rise in US home prices supported additional tolerance for equities. A lack of incentive to purchase Treasuries continues as disappointing Fed buying and no major auctions this week also contributed to the negative sentiment. Treasuries also contended with a renewed sense of global competition after the United Kingdom announced the details of its annual budget. The proposed budget includes (hold on to your hats, folks) record offerings of UK government debt in order to fund proposed economic recovery plans.
A near term bottom may be found in declining prices as a series of US debt auction announcement are scheduled for Thursday. This could offer a catalyst for buyers expecting renewed focus upon the Treasuries market as dealers return to the market. The lowest yields in over a month may also spur accelerated buying by the Federal Reserve in an attempt to “money manage” the $300 billion of debt purchases designed to support credit markets and keep borrowing rates lower.
Technically, June 30 year futures closed through the key level of support at 125.120 (finally) and tested the next level of support at 124.180. It would appear that a downward trend has set in with the next support target at 124.14 Resistance should be found at 125.075, with a possible spike up to 126.030.
|
US DEBT FUTURES |
OPEN |
HIGH |
LOW |
CLOSE |
CHANGE |
|
US M9 (US 30 YRS) |
125.220 |
126.020 |
124.180 |
124.205 |
-1.005/32nds |
|
TY M9 (US 10 YRS) |
122.125 |
122.200 |
121.270 |
121.295 |
-15.5/32nds |
Prepared by Rich Roscelli & Paul Brittain.
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. Alaron Trading Corp. its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. 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.
