GO
Loading...

Pro: Yes, Bonds Can Rally with Stocks

Tuesday, 19 Mar 2013 | 11:05 AM ET
The seal on the US Treasury building in Washington, DC.
Paul J. Richards | AFP | Getty Images
The seal on the US Treasury building in Washington, DC.

Treasury markets have maintained the bid that began on the news from Cyprus. This is interesting, because equity markets have rebounded in the face of the same headlines.


This indicates to me that global unease has the potential to push money into the relative safety of U.S assets. In this scenario, I believe that equities and treasuries can rally together.

Continued global uncertainty also strengthens the case for continued Fed bond purchases, which will support bond prices.

I like buying the June 10-year Treasury futures at current level of 131.11, with an upside objective of 132.10, and a stop-out level of 130.27.

Watch "Futures Now" Tuesdays & Thursdays 1p ET exclusively on FuturesNow.CNBC.com!

Like us on Facebook! Facebook.com/CNBCFuturesNow

Follow us on Twitter! @CNBCFuturesNow

Contact Futures Now

  • Showtimes

    Watch Futures Now Tuesdays & Thursdays 1p ET exclusively on cnbc.com!

Sponsor Links

  • CME Group brings buyers and sellers together through its CME Globex electronic trading platform and trading facilities in New York and Chicago.

  • Take your trading to the next level with a platform that lets you trade stocks, options, futures and forex all in one place with no platform or data with no trade minimums. Open an account with TD Ameritrade and get up to $600 cash.