ALARON US TREASURY FUTURES REPORT 04/20/2009
ECONOMIC DATA 04/21/2009: all times EST
10:00 AM STATE STREET INVESTOR CONFIDENCE INDEX
SUMMARY OF DATA
04/20/09 LEADING INDICATORS (-0.3 VS -0.3)
US TREASURIES GAIN ON EQUITY PULLBACK, RENEWED SECURITY BID AS OUTLOOK FOR FINANCIALS CAUSES CONCERN.
US Treasuries began the new trading week with gains after equities staged a significant pullback. The flight to secure debt was spurred by 1st quarter reports from Bank of America. While the controversial institution posted profits for the quarter, they also reported an increase in reserves needed to cover bad loans. Renewed concerns regarding increased credit losses spurred buyers to seek safe haven positions in secure debt and safe haven currencies (US Dollar, Japanese Yen).
Speculation that the stellar earnings achieved by many of the financial institutions in the 1st quarter will not be repeated going forward also increased interest in Treasuries, particularly as the debt instruments reached attractive yields relative to the range bound movements which the instruments have been trading in for well over a month. Monday’s move higher allowed yields on 10 and 30 US treasuries to rebound from their lowest levels in month.
Speaking of technicals, June US 30 year futures rebounded from key support levels that seem to be gaining direction from fundamental catalysts in the near term. Market is giving little indication of breaking out of its trade range between 125.000 and 128.000. In near term look for a possible pullback to 126.025 as a near term support. Upside movement should find resistance at 127.105.
|
US DEBT FUTURES |
OPEN |
HIGH |
LOW |
CHANGE |
|
|
US M9 (US 30 YRS) |
125.080 |
126.235 |
125.045 |
126.210 |
+1 10/32nds |
|
TY M9 (US 10 YRS) |
122.070 |
123.065 |
122.050 |
123.010 |
+24/32nds |
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.
