ECONOMIC DATA FOR 03/17/09
8:30 AM US HOUSING STARTS (450K), US PPI (PRODUCERS PRICE INDEX) (0.4%, EX FOOD & ENERGY 0.1%)
ECONOMIC DATA 03/16/09: EMPIRE STATE MANUFACTURING SURVEY (-38.0 VS -32.0) US INDUSTRIAL PRODUCTION (-1.4% VS.-1.2% EXP).
U.S. TREASURIES FALL ON RENEWED SUPPLY CONCERNS
U.S. Treasuries fell in today’s session, but remained well within their recent training range, as equities initially extended their rally before pulling back by the close of the session. The long end of the yield curve took the sharpest hit as equities rallied throughout most of the session as equities appeared on course to post another strong rally, diminishing the demand for lower yielding fixed income securities. The late session fall in equity prices, led by a drop in technology, offered some recovery in bond prices, but gains remained muted as supply issues returned to weigh on the market. Reports from this weekend’s G20) meeting suggested that the major world economic powers had agreed to “do all they could” to combat the global recession and credit freeze which continues to plague the economies of the world. This commitment, particularly by the US, suggests that world supplies of sovereign debt are not likely to drop in the near future.
Treasuries also failed to garner support from yesterday’s economic data which offered a worse than expected reading on manufacturing and industrial production. Tuesday, the markets receive their first reading on inflation for the week when the US PPI (Producer’s Price Index) is released.
Technically, June 30-year futures remain range bound with a series of slightly higher lows on a daily chart suggesting that the momentum building into this narrowing channel may be setting up for a breakout to the upside, Look for a significant resistance level at 126.285 with support at 124.170.
US DEBT FUTURES
OPEN
HIGH
LOW
CLOSE
CHANGE
US M9 (US 30 YRS)
126.075
126.220
124.090
124.310
-1.085/32NDS
TY M9 (US 10 YRS)
122.035
122.085
121.080
121.170
-14.5/32NDS
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.
