ALARON US TREASURY FUTURES REPORT 04/232009
ECONOMIC DATA 04/24/2009: all times EST
- 8:30 AM US DURABLE GOODS ORDERS (-1.8%)
- 10:00 AM US NEW HOMES SALES (330 K)
SUMMARY OF DATA
US WEEKLY JOBLESS CLAIMS (640,000) US EXISTING HOME SALES (4.5 M VS. 4.7 M EXP), EIA INVENTORY (NAT GAS) +46 BCF. US NOTE AUCTION ANNOUNCEMENTS (2YR $40 B, 5 YR $35 B, 7 YR $26B)
US TREASURIES TRADE IN QUIET SESSION. MARKET RECOVERY SUPPORTED BY RETURN OF FED BUYING, DISAPPOINTING EXISTING HOME SALES FIGURES.
US TREASURIES staged a tempered recovery in Thursday’s session as worst than expected readings on unemployment and existing home sales sparked buying in Treasuries, which have retreated in the last week to price/yield levels not seen since before the FOMC announcement of its plan to support lower lending rates through debt purchases.
The Federal Reserve focused most of its buying on debt scheduled to yield in 2012 & 2013. The concentration of its buying time frame offered some possible insight with regards to next week’s US Treasury auction. A total of $101 billion in US 2, 5, and 7 year notes are scheduled to be offered. So far the two year notes have been quite well received due to their evolution as a benchmark for the recession/recovery cycle. For this reason, support and recovery for Treasuries appeared to set in ahead of the seemingly inevitable supply concerns that arise to pressure the markets. This could be a temporary reprieve though as competition from other sovereign and higher yielding corporate debt continues to pressure Treasuries to retrace back through key support levels.
Technically, June 30 year futures continue to set up in a downward trend, holding below the key resistance level of 125.120. Looking for next downward target at 124.030, with a break of this level setting up to test 122.055.
|
US DEBT FUTURES |
OPEN |
HIGH |
LOW |
CHANGE |
|
|
US M9 (US 30 YRS) |
124.270 |
125.10 |
124.125 |
125.070 |
+18.5/32nds |
|
TY M9 (US 10 YRS) |
122.010 |
122.060 |
121.170 |
122.025 |
+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.
