Yields continue to fall on the long dated end of the treasury spectrum

Financials: As of this writing (7:00 am) March Bonds are 17 higher at 162’29, 10 Year Notes 2 lower at 130’27.5 and the 5 Year note 4 lower at 121’07.25. Treasuries have had a significant rally as traders have had a flight to the safety of the U.S. capital markets ignoring the prospect of higher yields due to the policy of tapering and dealing with more than transitory inflation. Yields continue to fall on the long-dated end of the treasury spectrum as the narrowing of the yield curve continues. The 2 Yar yield is presently 0.59%, the 5 Year 1.17%, the 10 Year 1.42% and the 30 Year 1.74%. Unemployment number tomorrow at 7:30 am, FOMC meeting the 14th and 15th of the month. Support for March Bonds is currently 160’00 and resistance 164’00.

Grains: Mar. Corn is currently 7’4 higher at 579’0 and Mar. Beans7’2 higher at 1242’4. The Grains have had a selloff along with most other commodities as markets trended lower in sympathy with Equities and Energies. The predominating trend remains down on Beans and sideways on Corn. Support on Mar. Corn remains at 571’0 and Resistance remains at 595”0. Support o Mar, Beans is now1226’4 and Resistance127’0.

Cattle: Dec. LC trend has turned up as the market rallied from the low 130’s to the 139.12 level over the last 2 weeks as the market anticipated good Holiday demand. Marketing and demand have been strong as retailers have been expanding meat in storage to cover remaining holiday needs. With the new covid variant I foresee a possible situation where Cattle get backed up after Xmas. Support for Dec. LC is currently 135.20 and resistance 137.65. Next week we will be switching to the Feb. contract month.

Silver: Mar. Silver is currently6 cents higher at 22.40. The trend remains down and highly volatile. Think options.

S&P: Dec. S&P’s are 9.00 higher 4517.50. The trend started turning lower late last week s the market absorbed news of a new covid variant causing fear of another lockdown as various European and Asian countries imposed restrictions designed to combat ever-increasing covid cases. Support is 4475.00 and resistance 460.00

Currency: The Dec. Dollar Index is 12 lower at 95.900. The trend remains up, however, this market has developed a good amount of resistance above the 96.50 level. Support is currently95.40 and Resistance 95.60-96.90.