After a very sharp and surprising run up in Treasury prices this week, it is difficult to discount the prospect that US Treasuries have become short term technically overdone. However, significant fears of a possible break up of the Euro zone and the prospect of significant global knock on slowing as a result of that break down, have clearly put the fundamental condition in favor of the bull camp in Treasuries. Continue Reading…

It is somewhat surprising to see June bonds holding within close proximity to yesterday’s highs in the early Thursday US trade as the trade appears to have skirted the latest Euro zone debt auctions results. Continue Reading…

(143,13) The BUND confirmed a few test of the 142,89 level but it failed to confirm a closing below that level. We may see another test today that we expect to manage a break of the support launching a correction toward the 200 hours line at 142,13!! Continue Reading…

Not surprisingly, US Treasuries have carved out another fresh new high for the move overnight. One almost gets the sense that the current flight to quality condition is poised to reach somewhat epic proportions, as the situation in Europe has taken on the appearance of a Gordian knot. Continue Reading…

(143,51) The BUND is still well bid but lost a little of the upside momentum, at least for now. The indicators of the daily chart are still well positive but also still showing well overbought conditions. Those of the s/t ones are mixed suggesting for the coming hours some consolidation. Continue Reading…

After another new high for the move in June bonds overnight, prices have fallen back as if short term technical readings were temporarily overdone. It also seems as if the trade is seeing a modest improvement in macro economic sentiment from the overnight trade as German GDP and Export figures fostered some minor optimism in the Euro zone. Continue Reading…

(143,16) The BUND confirmed another strong closing last night. The indicators of the daily chart are still well positive but also still showing well overbought conditions. Those of the s/t ones turned already below the line suggesting some consolidation or even a correction, that we still favour. Continue Reading…

Not surprisingly, US Treasury prices have soared to fresh new highs off the ongoing Euro zone turmoil. While flight to quality issues are the primary driving force behind the gains this morning, it is also likely that classic global slowing fears are also providing the market with some added lift. Continue Reading…

(143,32) The BUND is extending its move up after the strong closing on Friday. The indicators of the daily chart are still well positive but also still showing overbought conditions. Those of the s/t ones are all positive as well supporting higher levels. Continue Reading…

Not surprisingly US Treasuries have returned to the vicinity of the recent highs and most of that upward action was probably the result of fresh news of slowing in China and India overnight but it is also likely that the news of a large trading loss at JP Morgan provided some of the lift in Treasury prices overnight. Continue Reading…