SubscribeDaily Futures Commentary June 9, 2009
Tuesday, June 9, 2009
Today’s $35 billion three-year Treasury Notes auction is putting some pressure on the U.S. Dollar overnight. Concerns over rising supply and the U.S. ability to fund its growing debt is expected to temporarily halt the correction in the U.S. Dollar. Investors will be watching the auctions this week to see if investors are able to take on the additional supply being offered. In addition, the market will be concerned about how much higher yields will have to rise to satisfy demand.
Although yields are expected to rise as the Treasury increases supply by as much as $130 billion this week, September Treasury Notes and Bond futures are trading higher this morning. This could be because traders have already priced in the increase in supply or because they are waiting to see the actual results rather than speculate ahead of the actual number to be released later today.
Trading in the financial instruments could be choppy this week as there is a debate building as to whether the Fed will have to raise its benchmark interest rate by the end of this year. Many Treasury futures traders feel the …
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