What is going on with treasury futures?

Why did ZN jump up on Friday when the numbers were worse than expected? Doesn't the bad numbers mean that interest rates are less likely to be raised? ...That's why the banks' stocks dropped... What is going on, why did the 10-yr note yield go up on Friday?

 

When in doubt, people put there funds in Financials.

 

Isn't it logical than that ZN and ZB spike up ?

 

No, what is the reason?

 

Right, and lower yields = increased bond prices. Prices and yields have an inverse relationship.

 

10-yr note yield sure as hell did NOT go up on Friday... It did the exact opposite, in fact.

 

I don't think anyone has any idea what they are talking about lol

 

I trade treasuries all the time...they spiked up a lot on Friday, which means their yields went down. Bad employment data means rates lower for longer, so the inflation trade (commodities) kicked in on Friday and is following through today. Investors apparently believe rates lower for longer means more inflation later on...treasuries don't like inflation...it raises the yield higher, but current bond holders lose as their bonds drop in price. So, what you have is a disagreement between treasury investors who believe growth is slow (possible recession) and inflationists..who believe the FED is behind in raising rates.

 

Ok got it, Idk why I was thinking tnote futures were priced by yield earlier... so yeah, rates down, prices up

 

Priceless and perfectly matching screen name.