1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Treasury Futures Rally on Increased Auction Demand

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Aug 11, 2009.

  1. futuretrends24

    futuretrends24 New Member

    Joined:
    Apr 30, 2009
    Messages:
    234
    Likes Received:
    0
    Today’s sample of Futures Analysis from FuturesHound.com


    Today’s Treasury auction saw great demand which helped drive up the price of September Treasury Bonds. Investors were encouraged to buy the 3-year Notes at the auction because of the attractive yield and the weakness in the equity markets. Overseas demand was particularly stronger compared to the last three months. This could be an indication that foreign central banks are regaining confidence in the U.S. ability to pay back its debt obligations.

    U.S. equity markets fell sharply lower. Investors are beginning to question stock price valuations. The recent rally was triggered by foreign demand for risk and better than expected corporate earnings. Now that demand for risk is diminishing because of the strengthening U.S. economy and earnings results are being questioned, it appears buyers have become scare and longs are exiting existing positions.

    Investors are beginning to demand more than better earnings caused by cost cutting measures. They want to see greater spending by consumers driving up revenues. Money is still on the sidelines, but investors may not want to commit these funds until stock valuations get more in line with future earnings expectations.

    Read full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

    Disclaimer: Trading on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.
     
Loading...

Share This Page