The 10 year note in the September contract is trading higher by 6 points at 120/06 right near a 4 week high continuing its bullish momentum as the yield currently stands at 2.85% as I'm currently not involved, but I'm looking at a possible short position in the coming days ahead as this would be a counter trend recommendation.
Soybean futures in the November contract settled last Friday in Chicago at 9.30 a bushel while currently trading at 9.06 & now has traded lower 14 out of the last 16 trading sessions as this market has absolutely fallen out of bed hitting a 10 year low earlier in the week at 8.64 before profit-taking ensued pushing prices off session lows.
Treasury market bears on Wednesday clawed back some of the crushing losses suffered a day earlier after anxiety about the instability of the Italian government triggered a safe-haven stampede into U.S. government debt, forcing those with bets on bond weakness to rush for the exits.
Despite the widespread fear on Wall Street that the "risk free" return of Treasury bonds is undercutting the demand for stocks, a growing body of evidence suggests that the stock market may yet surprise on the upside before the month is over.
For months I have been explaining why I felt the Dollar was undervalued while non US $ currencies were in many cases (Euro,Swiss,Yen) extremely overvalued given the condition of our economy versus theirs and our higher interest rate picture.
Treasury yields fell Wednesday afternoon after the most recent update on monetary policy from the Federal Reserve showed few signs that the central bank would ratchet up its pace of rate increases, even as the Fed conceded that the outlook for inflation had strengthened.
US stocks look set to follow European peers higher at the open on Thursday as investors continue to assess the potential for conflict between the US and Russia over the weekend's alleged chemical weapons attack in Syria.
Equities across the world took a beating after U.S. tech stocks were under pressure but off their worst levels on Tuesday, with Asian and European stock markets faltering. Government bonds, on the other hand, saw inflows as investors sought out berths from where they could shelter against the market turmoil.