Tuesday, March 9, 2010

US 10-Year Money Flows

The US has issued more debt at shorter maturities as foreign lenders continue to shorten duration over the years. Expect to see this trend reinforced this week. As a result, tracking the money flows of 7-10 year notes (and shorter maturities) has become just as important as following those of the long bond market.

Money flows have reversed as prices pushed higher in response to the previous bullish setup. If outflows continue, a bearish setup will be generated at what could very well be a lower high.

US 10 Year (7-10 Years) and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest:


Source: treasurydirect.gov

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