At this point, the price of the 30-year US bond futures is fluctuating within the 131-135 range. The news bias is neutral. This means that the price cannot move to far away form the range.
The Commodity Trading Department of Masterforex-V Academy reports about the following changes for the US Treasuries market:
According to the Fed’s Vice Chairman, the US economy and labor market are far away from their potential. They should show signs of strength before the Fed starts tapering QE3.
At the same time, personal income is up by 0,5% against expected 0,3%. Still, consumer spending is down by 0,1% against the previous figures.
The PCE index, which gets more attention from the FOMC than the CPI, increased by 0,9% (y/y) during the reporting period. Still, it is far away from the 2% target set by the Fed.
The mortgage rates were up last week after a 2-week decline. The current figures are 4,16% 30Y and 3,27% 15Y (PMMS).
The latest GDP figures are reassuring since they are better than expected (2.8% vs 2.0%).
The amount of initial jobless claims reached 339K last week while the forecast was 330K.
Friday's new jobs report exceeded all expectations (240K against 120K). Still, the rate of unemployment is up by 0,1% to 7.3%.
Trading Recommendations
The US T-bond market is currently interesting for option traders in terms of selling strangles.
