Financials: June Bonds are currently 13 lower at 139’24, down 26 points for the week. 10 Year Notes are 8 lower at 118’29, down 14 for the week. 5 Year Notes are 6 lower at 112’21.75, down 6 for the week. The yield curve slightly widened this week with the longer dated treasuries gaining in yield over the shorter term, yields are currently as follows: 2 Year 2.67%, 5 Year 2.94%, 10 Year 2.96% and the 30 Year 3.04%. Yesterday the FOMC raised rates by .50% as expected. However, in comments expressed by Fed Chairman Powell a rate hike of 0.75% down the road is off thee table. He also noted that the Fed Balance sheet will be sold off of inventory by 47.5 Billion per month by at least the next 2 months compromising 17.5 Billion of Mortgage Bonds and 30 Billion dollars of treasuries. These statements were considered less hawkish than expected noting that the economy is strong despite inflationary pressure which can still increase temporarily from current levels due in part to the Russia/Ukraine conflict. Estimate for Friday’s Jobs Report is for an increase in non-farm payrolls of 300,000. Support for June Bonds is 138’14 and resistance 142’24.
Grains: Dec. Corn is up 3”0 at 739’2, down 13’6 for the week. Nov. Beas are up 8’0 at 1494’4, down 78’0 for the week. The old adage of “Rain makes Grain” came into play over the last week. May Corn still appears poised to test all time high of 838’0. That being said I still like long new crop/sort old crop spreads.
Cattle: June LC are currently 134.825, slightly lower for the week. Aug LC are at 137.075, up about 1.00 for the week and Aug. FC at 176.200, up 7.35 for the week. Over all the trend remains down. I will note that FC gained on Lc for the week as feed grain prices eased. Support for June LC is currently 132,75 and resistance 136.30.
Silver: July Silver is 65 cents higher at 23.05, down about 5 cent for the week, however this is almost 1.00 dollar off the lows. Support is now 22.45 and resistance 24.40. Short term trend has turned up.
S&P: June S&P’s are 50.00 lower at 4245.00, 30.00 higher for the week after yesterday’s rally. Tempered hawkish statements by the Fed Chairman seems to have sparked a 3.0% rally in most Indices. Support is 4130.00 and resistance 4330.00.
Futures and options trading involves substantial risk of loss and may not be suitable for everyone. The valuation of futures and options may fluctuate and as a result, clients may lose more than their original investment. In no event should the content of this website be construed as an express or implied promise, guarantee, or implication by or from The Price Futures Group, Inc. that you will profit or that losses can or will be limited whatsoever. Past performance is not indicative of future results. Information provided on this website is intended solely for informative purpose and is obtained from sources believed to be reliable. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
Recommended Content
Editors’ Picks
EUR/USD stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.