SubscribeDaily Futures Commentary FINANCIALS March 26, 2009
Thursday, March 26, 2009
FINANCIALS
June Treasury Bonds are called lower this morning. This market has gone down everyday since the Fed announced its plan to purchase government debt and mortgages. The charts are suggesting the possibility of another lower top which indicates a major top may be forming.
The failed auction in the U.K. could be a sign that investors are going to begin to demand higher interest rates over the near-term. The U.S. is going to have to start preparing for higher rates as oversupply and concerns about the U.S. ability to finance its own debt are still major issues.
Earlier in the month China questioned the safety of its assets in the U.S. given the recent aggressive moves by the Fed to shore up the banking system and the financial markets. This was a legitimate question as some of the Fed’s actions had never been seen before. At that time China was assured that their investments were safe. This assurance was necessary because China is the world’s largest holder of U.S. debt.
Unless there is a massive shift in market sentiment …
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