Interest Rate Roundup

Thursday, January 04, 2007

Long Bond follow up chart ...

Several days ago, I said that long bonds futures had breached an important uptrend (in price) dating back to June. Now, on the back of a weaker-than-expected pending home sales figure and a decline in the ISM non-manufacturing index to 57.1 from 58.9, bonds are rallying back and coming close to testing that breakpoint.
That's one heck of an interesting set up ahead of tomorrow's December employment report. Bloomberg says economists are looking for nonfarm job gains of 100,000. ADP said yesterday that the economy LOST 40,000 jobs. Strong numbers likely cause us to fail and roll back over. Weak numbers could invalidate the technical break. Fasten your seat belts.


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