Ultra T-Bond Futures Market News and Commentary
Jun 10-year T-notes (ZNM21) on Monday closed down -3 ticks. The 10-year T-note yield rose +1.0 bp to 1.669%.
June 10-year T-note prices (ZNM21) on Monday closed slightly lower. Higher German bund yields on Monday pressured T-note prices along with supply pressures as the Treasury on Monday auctioned $96 billion of 3-year and 10-year T-notes. In addition, long liquidation in T-notes is negative for prices ahead of Tuesday's monthly U.S. consumer price data. Losses in T-notes were contained Monday by weakness in U.S stock indexes and dovish Fed comments.
Comments on Monday from Boston Fed President Rosengren were bullish for T-notes when he said a full recovery might take longer than some expect and that a highly accommodative Fed policy is appropriate.
T-notes are seeing continued support from the ongoing global pandemic, which undercuts economic growth and is dovish for central bank policies. The 7-day average of new Covid infections in... Read more