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business newsYields Moving Higher Before Supply
By
Richard Suttmeier
Apr 20, 2010 9:00 am
On Thursday the Treasury will announce auctions of 2-Year, 5-Year, and 7-Year notes for auction next week.
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Editor's Note: This article was written by Richard Suttmeier, chief market strategist at ValuEngine.com, which is a fundamentally-based quant research firm in Princeton, New Jersey, that covers more than 5,000 stocks every day.
10-Year Note -- Yields tend to rise in anticipation of supply, then decline during the auction process, as demand remains strong for the international safety of US Treasuries. Next week the US Treasury will auction $44 billion in 2-Year notes on Tuesday, $42 billion in 5-Year notes on Wednesday, and $32 billion 7-Year notes next Thursday.
Source: Thomson / Reuters
The Beige Book for next week’s FOMC meeting showed that many districts reported increased activity in housing markets, but from low levels. Commercial real estate market activity remained very weak in most districts. Activity in the banking and finance sector was mixed in a number of districts, as loan volumes and credit quality decreased. While labor markets generally remained weak, some hiring activity was evident, particularly for temporary staff. Wage pressures were characterized as minimal or contained. Retail prices generally remained level, but some input prices increased. This backdrop will leave the federal funds rate at zero to 0.25% for an “extended period.”
Comex Gold -- Annual, quarterly, and annual supports are $1115.2, $1052.8, and $938.7 with weekly and semiannual pivots at $1131.3 and $1139.7, and daily, semiannual, and monthly resistances at $1149.3, $1186.5, and $1202.5. Gold will stay in the trading range shown.
Source: Thomson / Reuters
Nymex Crude Oil -- Annual and quarterly supports are $77.05 and $58.41 with a daily pivot at $82.39, and weekly and monthly resistances at $84.30 and $84.54, and annual and semiannual resistances at $97.29 and $97.50. The trading range has been moved upward, but that annual pivot remains a magnet at $77.05.
Source: Thomson / Reuters
The Euro -- Quarterly support is 1.2450 with a weekly pivot at 1.3507 and daily, monthly, and quarterly resistances at 1.3695, 1.4081, 1.4145, and 1.4478. The euro remains vulnerable versus the dollar.
Source: Thomson / Reuters
The Major Equity Averages
Click to enlarge
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10-Year Note -- Yields tend to rise in anticipation of supply, then decline during the auction process, as demand remains strong for the international safety of US Treasuries. Next week the US Treasury will auction $44 billion in 2-Year notes on Tuesday, $42 billion in 5-Year notes on Wednesday, and $32 billion 7-Year notes next Thursday.
The 2-Year shows a week’s pivot at 1.02 with semiannual support at 1.089. Quarterly resistance is 0.914.- The 5-Year is under the influence of pivots at: 2.529 semiannual, 2.487 weekly, and 2.464 quarterly.
- The 7-Year is cheaper than quarterly and semiannual pivots at 3.173 and 3.107.
- The 10-Year held 4% recently and this week’s resistance is 3.735 with that semiannual pivot still lurking at 3.675.
Source: Thomson / Reuters
The Beige Book for next week’s FOMC meeting showed that many districts reported increased activity in housing markets, but from low levels. Commercial real estate market activity remained very weak in most districts. Activity in the banking and finance sector was mixed in a number of districts, as loan volumes and credit quality decreased. While labor markets generally remained weak, some hiring activity was evident, particularly for temporary staff. Wage pressures were characterized as minimal or contained. Retail prices generally remained level, but some input prices increased. This backdrop will leave the federal funds rate at zero to 0.25% for an “extended period.”
Comex Gold -- Annual, quarterly, and annual supports are $1115.2, $1052.8, and $938.7 with weekly and semiannual pivots at $1131.3 and $1139.7, and daily, semiannual, and monthly resistances at $1149.3, $1186.5, and $1202.5. Gold will stay in the trading range shown.
Source: Thomson / Reuters
Nymex Crude Oil -- Annual and quarterly supports are $77.05 and $58.41 with a daily pivot at $82.39, and weekly and monthly resistances at $84.30 and $84.54, and annual and semiannual resistances at $97.29 and $97.50. The trading range has been moved upward, but that annual pivot remains a magnet at $77.05.
Source: Thomson / Reuters
The Euro -- Quarterly support is 1.2450 with a weekly pivot at 1.3507 and daily, monthly, and quarterly resistances at 1.3695, 1.4081, 1.4145, and 1.4478. The euro remains vulnerable versus the dollar.
Source: Thomson / Reuters
The Major Equity Averages
Click to enlarge
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No positions in stocks mentioned.
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