Watching Bernanke talk about the longer-term unemployed and the deficit cutting commish front-men give their press conference and at the moment, none of that really matters. What keeps hitting OUR inbox is technical reversal that occured here at the end of the day, producing a monthly downside reversal. Combining today with what happened LAST month (think Doji) and folks have even MORE reason to be bearish OF USTs. Here’s a look at 10yr futures:
Month end buying is now behind us and ADP/NFP straight ahead of us. Rates were trending UP throughout QE1 and now look set to do the same during QE2 … unless of course Euro sov situation were to get worse (that possible?) and/or geopolitical concerns were to heat up. Again. From here. Nobody said the bond market was gonna be easy. Monthly reversals and Doji’s are not to be taken lightly and so with THAT we’re crawling back UNDER the rock from which we came.