Different Week, Same Selling
Different Week, Same Selling
Selling continues to be the path of least resistance for the bond market. Open interest data from Treasury futures suggests Friday's "short-covering" assessment may not be the only story. Reason being: open interest moved HIGHER (it would be much easier to conclude short-covering drove the move if open interest was lower). The counterpoint is that new short positions in the afternoon could have merely offset the AM short-covering. Heading into the current week, bonds did their best to hold flat overnight but have been increasingly pressured by fuel prices and technicals. Oil is up about $4 from Friday and there was additional technical selling when 10yr yields hit 5%. Bigger decisions will be made after Wednesday's Fed announcement--for better or worse.
AM Rally Completely Erased By The Close
| Time | Event | Period | Actual | Forecast | Prior |
|---|---|---|---|---|---|
| Monday, Sep 14 | |||||
| Tuesday, Sep 15 | |||||
| 8:15AM | ADP Employment Change Weekly | 12K | |||
| 8:30AM | Sep NY Fed Manufacturing | Sep | 14.75 | 20.60 | |
| 11:30AM | 6-Week Bill Auction (%) | 3.740% | |||
| 12:00PM | NOPA Crush Report (%) | ||||
| 1:00PM | 20-Yr Bond Auction (bl) | 13 | |||