SubscribeDaily Futures Commentary FINANCIALS March 27, 2009
Friday, March 27, 2009
FINANCIALS
The treasury markets have traded lower since the Fed announced last week its plan to buy government debt and mortgages. The initial thrust was to the upside in what looks like now was a knee-jerk reaction to the announcement. Since March 18 both the Bonds and the Notes have steadily declined into the range it has traded in for several months.
The June Treasury Bonds and Treasury Notes are giving enough signs that a major top is forming. It seems it’s just a matter of time before this complex rolls over to the downside. The size of the amount of debt floating out there is just too great to keep interest rates down. Although the Fed is going to continue its buying spree in an effort to keep long-term interest rates down, economic reports are beginning to suggest the economy may be bottoming. This news will continue to keep interest rates steady but eventually will begin to trigger a gradual rise.
New concerns about China continuing to finance the U.S. debt crept into the markets this week. The Chinese are worried …
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