U.S. TREASURY FUTURES REPORT FOR FEB. 27, 2009
ECONOMIC DATA all times EST.
8:30 AM-US 08 4TH QUARTER GDP (-5.4%)
9:45 AM- NAPM-CHICAGO (33.0)
9:55 AM CONSUMER SENTIMENT (56.0)
RESULTS FROM DATA FOR FEB. 26, 2009: US DURABLE GOODS ORDERS (-5.2% VS. -2.6% EST), US WEEKLY JOBLESS CLAIMS (639K VS. 619K), US NEW HOME SALES (309K VS 330K), EIA NAT GAS REPORT (-101 BCF)
US TREASURIES CONTINUE TO FALL AFTER RECEPTION FOR 3RD RECORD AUCTION THIS WEEK OFFERS HIGHER YIELDS, CONCERNS ABOUT SUPPLY.
U.S. Treasuries fell for a third session, with the 30-year futures pushing through key technical support levels, as poor economic data on housing, employment and durable goods failed to overcome the ever growing concerns regarding the enormous supply of government debt that will need to be absorbed in order to fund stimulus and recovery programs. In addition, the government announced a forecasted deficit of $1.75 trillion dollars, nearly 12% of the U.S. Gross Domestic Product.
The recently reissued US seven-year notes auctioned $22 billion worth of notes on Thursday capping off another week of record levels of debt hitting the market place. Yield on the auction was slightly higher than forecast, as the market continues to hold back on embracing the longer end of the yield curve in these auctions, as near term supply and longer term inflation concerns weigh on the viability of these instruments as investments.
Technically, March 30-year futures broke, then retreated back above its near term support level of 125.120. Downward momentum appears to be slowing, so that a limited pullback to the 125.300 level is setting up as a resistance target. Resumption of downward pressure should set up a target support of 123.00, with a longer term target projection of 121.05.
US DEBT FUTURES
OPEN
HIGH
LOW
CLOSE
CHANGE
US H9 (US 30 YRS)
126.140
126.225
125.005
125.250
-13/32nds
TY H9 (US 10 YRS)
121.260
122.015
121.025
121.230
+3/32nds
Prepared by Rich Roscelli & Paul Brittain.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities.
