John Canavan Market Quotations

You have seen a pretty significant rise in open interest in the Treasury futures market since the middle of last month as prices have declined, suggesting a pretty substantial short base out there, so we've held our footing so far this week.

Yes, the market developed a fear that employment would be stronger than it turned out to be, but it was still a pretty solid number, above economists' consensus forecast, so in general you're looking at recent economic numbers that have bond traders a little bit concerned.

The spread supply had been a factor weighing on the Treasury market and when the 10-year TIPS auction didn't go terribly well, that compounded the issue.

Initially we turned a little lower after the auction results, but in the end we turned a little higher. It just seems as if the market has been able to recover partially after the losses of the last two days.

The market is in a range trade and that situation is only getting more pronounced as we near the end of the year.