Monday, October 22, 2012

So what is the target for this position?

Between the stocks vs bonds divergence, month-end approaching, and today's 30yr POMO buyback, i see no reason why 10yr notes shouldn't approach yesterday's high prices.  I'll be watching the tape closely today, especially around the mode in ZN.  If we stay here at 132-03 in ZN for another 1 1/2 hours, the mode will shift (just staying consistent with mkt profile).  However, that doesn't mean the mode couldn't shift again if we spend any more time up around 132-07.   Too many "ifs" for me, so for now, i'm just watching the tape and sitting on my long.

govttrader out....

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