ECONOMIC DATA 04/01/2009: all times EST
8:15 AM ADP EMPLOYMENT REPORT
10:00 AM- ISM MANUFACTURING SURVEY (38.0), US CONSTRUCTION SPENDING (-1.5%), US PENDING HOME SALES INDEX
10:35 AM EIA INVENTORY NUMBERS.
ECONOMIC DATA 03/31/09- NAPM (Chicago) INDEX (31.4 VS. 35) US CONSUMER CONFIDENCE (26.0 VS. 28.0).
TREASURIES CONTINUE GAINS AS WORSE THAN EXPECTED DATA; MARKET VOLATILITY PROMPTS THOSE WITH WEAKER STOMACHS TO SEEK SECURE YIELD.
U.S. Treasuries completed another session of gains, led by worse than expected readings on U.S. manufacturing and consumer confidence. In addition, traders and investors sought out the relative security of government fixed yield as ongoing volatility in the equities markets ramped up again today, particularly in the financial sector.
Treasuries posted initial gains after the NAPM (Chicago) Index and U.S. Consumer Confidence posted worse than expected readings. The scenario painted by these readings demonstrates an ongoing deterioration of the manufacturing sector and perceptions regarding the economy. One bright spot within the U.S. Consumer Confidence report was a slight uptick in sentiment regarding future prospects for the U.S employment picture. This element seems to present a light at the end of the tunnel scenario which could put a cap on the cautious rise which Treasuries seem to be posting. Treasury gains may also be muted if purchases by the Federal Reserve remain lackluster, revitalizing concerns about the extraordinary supplies which show no signs of abating in the foreseeable future.
Technically, June 30-year futures are approaching a key resistance level at 130-10. If this level is breeched and held, the market could set up to test its highs from the FOMC announcement of 132-00 and push through to 133-31.5. Support has set at 126-25, with key level remaining at 125-12.
US DEBT FUTURES
OPEN
HIGH
LOW
CLOSE
CHANGE
US M9 (US 30 YRS)
128.290
129.310
128.200
129.225
+24/32NDS
TY M9 (US 10 YRS)
123.230
124.070
123.160
124.025
+10/32nds
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.
