Since late July, 30-year Treasury bond futures have rocketed from 114 to near 120. Jack Broz, president of the Marlin Letter, explains firms bought new paper at a yield of 4.7% and pushed rates up through auctions, then a couple of overseas hedge funds blew up, and $30 billion was liquidated into US bonds, triggering massive buying. Harold Lavender, independent broker and trader, says 30-year T-bond futures will range trade between 119 and 120-16 for the next six to eight weeks. There isn't much appetite for rates to go much higher, at least until post election, he says.
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