Replies to post #320070 on Zeev's Turnips Patch-No Politics (ZEEV)

[marketmaven]

Bears Continue to Chase Treasuries :

Treasuries were under pressure throughout trading closing under mid-session levels. The $22 bln 3-yr note auction drew 3.090% with a cover of 2.24, indirect bidder participation was reported a healthy 53.6% while the $15 bln 5-yr is scheduled to go tomorrow. Despite the recent surge in nonfarm and decline in oil, treasuries remain range bound, 3.95% to 4.3% since the beginning of Sep. The focus has turned to whether or not range trading will continue in the face of the persistent dollar weakness. Another is the looming question of how aggressively the Federal Reserve will raise rates. Many Fed speakers over the past month have suggested that incoming economic data will have more of an influence on their decision than the price of crude. The market has locked in a quarter-point hike come Wednesday, but the market remains uncertain about continued hikes in December and beyond. Before the Dec 14 FOMC meeting the market will first need to digest another month of economic data, including one more nonfarm report due out Dec 3. Bears have momentum, but the bulls may still have play. The economic data being released tomorrow is light with wholesale inventories (1.0% E) the only major indicator printing. "There has been some profit-taking on the dollar," as well as an effort on the part of EuroZone officials to talk the euro down, "the trends are clear, you just need to be able to hold onto a trade," noted one long-time market maven. The world's outlook that deficit reduction "isn't even a gleam," in the eye of policy makers "will keep the hurt on," the buck. Another especially well informed player noted that the dollar's fate hangs in the hands of the Fed, saying "it's all up to Ali G [Greenspan], and what he has to say," concerning reining in deficits. Weekly initial claims and continuing claims will report on Nov 10 instead of Nov 11, and FOMC minutes will be released Nov 12 instead of Nov 11. Treasury markets will not have an early close Wed or Fri. CBOT says the market will trade regular session hours both days on either side of the Thurs Veterans' Day holiday.