BondMoves would like to thank the CME Group for allowing us to reprint the following information. Click here to view all CME Group Market Commentary and Analysis. All copyrights are retained by the CME Group.
July 5th, 2012
Treasury prices started out higher and then fell back slightly in the face of confirmation of foreign central bank easing action. Ultimately Treasury prices regained their footing and returned to almost the middle of the last two month’s consolidation zone into what could be seen as an extremely critical monthly US Non Farm payroll result. Perhaps a softer than expected ISM Non Manufacturing result rekindled US slowing fears again and perhaps the slightly better than expected US data released earlier in the session today was simply cause for some traders to discount the prospect of fresh easing dialogue from the Fed Chairman during the Friday US trade action. It is also possible that dialogue from the ECB’s Draghi fostered some fresh flight to quality buying of Treasuries as his comments suggested the EU situation remains very precarious.
*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.
Related Links To CME Educational Content: