Treasury Yields Decline
INTEREST RATE MARKET FUTURES
Federal Reserve Governor Christopher Waller, and other Fed officials, on Wednesday warned of higher interest rates than markets are anticipating.
After Tuesday’s very poorly received three-year note auction, yesterday’s 10-year note auction had some of the strongest metrics in history.
The Treasury will auction 30-year bonds today.
Most likely the Federal Open Market Committee will increase its fed funds rate by 25 basis points at its March meeting.
The long term outlook for futures is higher.
STOCK INDEX FUTURES
Stock index futures are higher due to today’s falling yields on Treasuries.
Jobless claims in the week ended February 4 were 196,000 when 192,000 were expected.
The technical aspects for stock index futures remain supportive.
The U.S. dollar index fell sharply against a basket of major currencies, ignoring hawkish remarks on interest rates in the U.S. from several Fed officials.
In addition, some of the selling is due to the larger that predicted jobless claims report.
Interest rate differentials are neutral for the U.S. dollar index, and breakouts for the greenback are likely to fail in both directions.
The annual inflation rate in Germany in January was 8.7%, which compares to the anticipated 8.9%.
Interested in more futures markets? Explore our Market Dashboards here.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.