SubscribeDaily Futures Commentary FINANCIALS March 25, 2009
Wednesday, March 25, 2009
FINANCIALS
June T-Bonds and June T-Notes are expected to open lower today based on weaker overnight trading. Despite the fact that the Fed will begin to buy treasuries today as part of their quantitative easing plan, the markets are called lower. It looks as if traders have already priced this action into the market.
Signs of a major top are becoming more evident. Bonds for example are trading below the close of last week’s FOMC meeting day. Overnight weakness has them pretty close to erasing all of the gains from the spike up that day.
This indicates that traders are becoming more worried about the government’s ability to finance the growing federal deficit. More signs of a top are becoming evident. Market participants seem convinced that interest rates are going to have to rise.
Bonds and Notes are also competing against the stock market at this time. The rise in the stock market has traders a little less risk averse which is leading them to take money out of the fixed income market to invest in equities. This is also …
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