Halister News

(Bloomberg) -- “We are moving through what has historically been a seasonal period of weakness in the bond market between January and March and toward a seasonal period of strength into April,” independent strategist Marty Mitchell says in note.

• “While that seasonal pattern has not been all that strong in the last few years given all of the unconventional monetary policy, it seems to be playing out so far in 2016”
• Other observations from strategist morning notes:
• BMO (Aaron Kohli): “Market got slightly more short heading into the payrolls number,” and “this shows that the selloff that we saw last week was at least partly the introduction of new shorts into the market and that positions are still not suggestive of complete capitulation”
• FTN (Jim Vogel): “Lack of trading activity around 1.90% on 10-yr UST” increases “importance of this month’s auctions where investors will have to make a commitment rather than simply read more articles about the European Central Bank and the Fed,” and “reduces the reliability of any one day’s move in reaction to data”
• RBS (John Briggs): “While we still feel Treasuries are headed higher in yield, directionally we are quite oversold and entering a series of near-term resistances”