Friday, May 2, 2014

Is The Treasury Market Telling Us Something?

In the face of a strong Non Farm Payroll Report, US Treasuries dropped initially but rallied sharply mid-session and have been staying strong. 10 year yield rose to 2.666% intially then dropped back down to 2.574%, a 6 month low. Why are they behaving this way? Are bond traders seeing something they don't like in the Non Farm Payroll Report or they are seeking safe haven as the Ukraine tension escalates? Who knows, it may be because of both. The only concern I have is the 10 year yield is on the verge of breaking down after 3 months of side way actions. When the break down happens, stock investors may get scare and sell stocks off. This may be one of the reason why stocks reversed from up to down today.


























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