Last week the Bond traded in an extremely narrow 2-08-point weekly range and posted an Inside Week and Inside Day Up as the Bond settled in the middle of the previous week’s range. The 10-year finished the week grinding higher and posted an Inside Week Up.
The market reaction to this morning's jobs number was somewhat muted, likely maintaining lower volumes ahead of Tuesday's election. The level we have been noting, 2086, has served to be somewhat of a magnet. Major energy products are declining today, with WTI crude oil trading below $44 per barel briefly.
Early Friday, Sept. 30, all Treasury products (30s, 10’s, 5s and 2s) either tested or posted their respective weekly highs and plunged throughout the session to finish the week at the lower end of their respective weekly ranges.
On Friday, Aug. 19, the 30-Year Treasury Bond finished the week going out near its weekly low as the market rejected my call for a recovery; The 10-year Treasury Note finished the week re-testing its weekly low and my minimum lower weekly boundary projection at 131-26/24.
The Bank of Japan says there is no possibility of helicopter money, and by a strict definition they are correct. But as the government plans to issue more 40-year bonds, it is looking more and more like some monetization of debt is underway. The BOJ says as long as it buys Japanese government bonds (JGB) from the market, it is not directly underwriting bonds to fund government spending.