Five-year Treasuries out of support for higher gains

Five-year Treasuries saw net short positions increased slightly for 'non-commercial' accounts in Tuesday's week-ending CFTC, 'Commitment of Traders' report.

A month ago, this series (below) reached a 6-year max in net short. The futures contract finished last week higher on the day, but well off the session high, falling into the close(bearish shooting star). Friday, with its slightly higher finish on both the session and the week, is not technically supportive of further gains.

We would view the price action since a week ago Thursday as a very uninviting recovery and Friday's reverse from the session high somewhat telling. Further weakness today and a lower settle, particularly one at or below 119-04.5 should encourage some selling.

The futures contract finished last week higher on the day, but well off the session high, falling into the close (bearish shooting star). Friday, with its slightly higher finish on both the session and the week, is not technically supportive of further gains. We would view the price action since a week ago Thursday as a very uninviting recovery and Friday's reverse from the session high somewhat telling. Further weakness today and a lower settle, particularly one at or below 119-04.5 should encourage some selling.    

 

 

About the Author

Martin McGuire, managing director at TJM Institutional Services

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