ECONOMIC DATA FOR 03/10/09
NO MAJOR ECONOMIC DATA RELEASES.
1:00 EST: US THREE-YEAR NOTE AUCTION ($34 BILLION)
US TREASURIES RETREAT ON RENEWED SUPPLY CONCERNS, MARKET SEES NO END IN SIGHT TO RECORD AUCTIONS.
U.S. Treasuries retreat from recent gains as debt supply concerns took center stage as the markets await the results of another series of record auctions. Tuesday kicks off with record supply of $34 billion worth of U.S. three-year notes. This category of debt will be a crucial one to watch, not only with regards to its record size, but also the significance that this time period of debt seems to have. The three-year note appears to be taking the role of the optimistic end of the yield curve as it pertains to the recession/recovery cycle. For the most part, three-year auctions have consistently performed well, as the time commitment is being perceived as reasonable with regards to inflation risk exposure and opportunity costs as measured against recovering corporate debt and equities. Together with its close rival, the U.S. two-year note, these instruments remain the best overall performers with regards to value preservation in government debt for 2009.
Technically, June 30-year bonds seem to be resuming their downward trend, with the next significant target level of support setting up at 123.11. A break of this level should create additional downward momentum to 122.070. Look for strong resistance at 127.270.
US DEBT FUTURES
OPEN
HIGH
LOW
CLOSE
CHANGE
US M9 (US 30 YRS)
126.220
127.110
125.150
126.310
3 065/32nds
TY M9 (US 10 YRS)
121.180
121.300
121.015
121.275
1 19/32nds
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.
