ALARON US TREASURY FUTURES REPORT 05/14/09
ECONOMIC DATA 05/14/09: all times EST
- 8:30 AM US CPI (0.0%, 0.1% EX ); EMPIRE STATE SURVEY (-12.0)
- 9:15 AM INDUSTRIAL PRODUCTION (-0.6%)
- 9:55 AM US CONSUMER SENTIMENT (67.0)
SUMMARY OF DATA
US PPI (0.3% VS. 0.1%, 0.1% EX); US WEEKLY JOBS CLAIMS (631K VS.609K)
EIA INVENTORY #’S (NATURAL GAS 95 BCF (0))
US TREASURIES TRADE HIGHER IN QUIET SESSION, FED BUYING CONTINUES TO OFFER SUPPORT DURING AUCTION HIATUS.
US Treasuries traded slightly higher in Thursday’s quiet session. Data on inflation and employment was relatively benign for Treasuries. The Federal Reserve purchased about $3 billion of short term notes during the session today as well. While this would be considered a relatively small purchase, it managed to offer a sense of support to a market that is currently without its major negative influence of supply concerns. These concerns have been subdued as Treasury auctions are currently on hiatus until May 26th.
Treasuries have managed to rebound off of support as the market continues to view economic fundamentals as weak, despite signs of improvement. In addition, expectations for stepped buying by the Federal Reserve in an effort to keep lending rates near record low levels has offered incentive for Treasuries to stage a bounce off key support levels. The reprieve may be short lived however once the record auctions reignite debt supply concerns.
Technically, June US 30 year futures made another attempt to break resistance of 123-090.Resistance at this level remains strong and indications are that the upward move could be setting up to fail due to numerous levels of significant resistance between 123-09 and 125-12. If and when the current upward momentum fails, the market should pullback to an initial support level of 121-310. Initial downward target for the June contract is 118-220.
|
US DEBT FUTURES |
OPEN |
HIGH |
LOW |
CHANGE |
|
|
US M9 (US 30 YRS) |
122-235 |
123-130 |
122-145 |
123-035 |
+5.5/32nds |
|
TY M9 (US 10 YRS) |
121-200 |
122-020 |
121-155 |
121-215 |
-2.0/32nds |
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.
