T-Bond trading comment (July 17, 2007)

Today looked like a deja-vu for several market participant as the market failed to develop a trend in the early morning but trended nicely in the second part of the morning. Like yesterday, operators looking for only 1 or 2 ticks will have had a good run even if there was a dry-patch between 9h15 and 10h15. For longer trend traders, well if you were still there after 10h AM good for you...

The much awaited PPI number was a bit of a flop in term of market impact but yielded interesting results when studied in details... Quick question, what are the central banks of several countries worrying about ? Food prices ! What went down in the inflation number ? Food prices ! Granted they are still up 6.3% yoy but still. On another subject, the NAHB index fell to its lowest in 16 years. When looking at this number, we have to keep in mind that this is a survey and that after several terrific years they are bound to find it hard... Mood swings... And obviously, the market seems to have taken it like that.

Tomorrow, we will await CPI numbers and housing numbers before turning all ears to listen to Mr. Bernanke's take on the state of the economy.