US Federal Reserve showing concerns on inflation
|Financials: As of this writing Sept. Bonds are 1 higher at 158’15 10 Year Notes 1 lower at 131’3 and the 5 Year Notes 3 lower at 123’10 The treasury markets have had quite a shake out since yesterday as rates climbed particularly the 2 & 5 year notes increasing 6 &5 basis points respectively while the 10&30 year increased yields only 1-2 basis points flattening the yield curve. Basically, the Fed is showing some concern as various reports showed higher than expected inflation of which they have labelled transitory and have stated they are more concerned with jobs growth. Again, the Fed has had conversation bout “tapering” the 120 Billion Dollars worth of Notes and Bonds it purchases monthly. WE now look to the August meeting for direction and possible change in these monthly purchases.
Grains: Corn and Beans are sharply lower this morning. Rain is forecast over next 14 days and the market is being influenced by a very strong dollar, weak metals and weak equities.
Cattle: Both Feeder and Live Cattle closed higher yesterday in response to lower Grain prices. These markets are now in resistance with support roughly 200 points below yesterday’s settlement.
Silver: July Silver is $1.47 lower at 26.34. A strong Dollar and higher interest rates have sparked liquidation of long positions. Support is now at 25.86 and resistance 28.20.
S&P: Sept. S&P’s are currently 2.00 lower at 4211.00. Support is currently 4185.00 and resistance 4250.00. This market came under pressure after the te Fed announcement and press conference So far the overnight low of 4183.00 is holding.
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