The treasury markets have been stuck in a sideways trading pattern since the Federal Reserve Board's announcement that they would begin tapering off the additional stimulus with the intention of completing their stimulus additions by year end.
Given the persistent and dramatic geopolitical risks that continue to remain in play, it appears that fear is taking over where stimulus ended to support U.S. Treasury prices. When this is combined with the shift of Quantitative Easing from the U.S. Federal Reserve Board to the European Central Bank which we discussed in "Hand QE to Germany", we can see that there is still support for low interest rate policies into the near future.
Finally, the 10-year Treasury Note futures chart below displays a classic example of how the commercial traders rake it in hand over fist selling rallies and buying breaks in a sideways market.
These trades come straight from our nightly subscription service at COTSignals.com. You can see our recent trades in the 10-year Treasury Note futures below.
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Here's the deeper analysis that TraderPlanet published:
Time to Buy 10-Year Notes: Here's Why
