Fri, Jul 3 2009, 08:32 GMT
by Nicole Elliott
Comment: Scrambling back up towards contract high (99.420) as two and five-year TNotes catch up with what has been going on in the money market, where US banks are finding it a lot easier and cheaper to borrow dollars than other institutions can. This futures contract is overbought and prone to sudden slippage on the slightest piece of baddish news so extreme caution is warranted. Nevertheless the hope of even lower rates continues.
Strategy: Attempt small longs at 99.395, adding to 99.320; stop well below 99.240. Cover around 99.450/99.500, then watch for signs of instability.
Published on Fri, Jul 3 2009, 08:34 GMT
Mizuho Corporate Bank
| 1-3-3, Marunouchi, Chiyoda-ku, Tokyo 100-8210
http://www.mizuho-cb.co.uk | Nicole.Elliot@mhcb.co.uk
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