SubscribeDaily Futures Commentary June 11, 2009
Thursday, June 11, 2009
Equity markets are trading higher overnight after regaining about 50% of yesterday’s break. Investors continue to express their concerns about the direction of interest rates at this time.
Today stock traders will be watching the June Treasury Notes and June Treasury Bonds as the government conducts another key auction to raise money to fund the growing deficit. Additional pressure will be on trader’s minds because of the release of last month’s retail sales results.
The biggest fear affecting traders is the thought that rising bond yields will limit the gains the economy has been experiencing recently. Recent reports have demonstrated that the economy is beginning to experience a turnaround, but the threat of higher interest rates has been real enough to keep many traders on the sidelines.
Yesterday’s auction sent Treasury Bond yields near 4%. Today the U.S. is due to auction off another $11 billion in debt. A substantial rise above 4% is likely to put downside pressure on the equity markets.
The trading action over the past two weeks shows higher-highs, but it also reveals that investors have been unwilling to chase the market …
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