I am not to clear about this, when T-notes, T-bills and bonds are up is it better for stocks, futures, and options or is it bad. Please explain this problem to me. All insides are going to be greatly appreciated.
The answer is "all four". Linear economic logic can be used to describe bullish or bearish scenarios. (1) When treasuries increase in price, it's bullish for stocks primarily because borrowing costs are expected to decline. That cost savings can translate into increased earnings later on. (2) When treasuries increase in price, it's bearish because there's an appearance of recession. The Fed (or the EuroDollar futures contract) can be nudging interest rates lower in order to spur borrowing and eventual increased business activity. (3) When treasuries decrease in price, it's bullish for stocks because it indicates aggressive borrowing which is expected to translate into higher earnings and a greater ability to pay off bank debt later on. (4) When treasuries decline in price, it's bearish for stocks because it indicates an increased default risk for other forms of debt. Interpret those however you want to.