Bonds Continue their Levitation Act Despite Rising Stock Market

As to be expected in a holiday market, overnight trading was light. Stocks reacted to positive German unemployment data and rallied slightly. US Treasury bonds continue to rally against the backdrop of rising stock prices and the end of QE.

30 year Treasury Bonds continue to rally

30 year Treasury Bonds continue to rally

S&P 500 Futures

S&P 500 Futures

The Euro gave back some of its recent gains against the dollar, dropping slightly below the 1.25 level again. Some analysts thought that with the Fed ending QE and Europe expanding its balance sheet, the only place for the Euro to go was down against the dollar. In fact, Goldman Sachs made shorting the Euro against the dollar their number 1 trade for 2015. Since then the Euro has remained stable, unable to stay below 1.2

Euro USD Forex Futures

Euro USD Forex Futures

Elsewhere in the news:

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