Higher yields means increased government financing costs as the Obama administration borrows record amounts to sustain the recovery. U.S. marketable debt has risen to an unprecedented $7.41 trillion to fund a budget deficit the government predicts will swell to $1.6 trillion in the fiscal year ending Sept. 30. The Treasury will sell a record $2.55 trillion of notes and bonds this year, an increase of about $440 billion, or 21 percent, from last year, Morgan Stanley estimated at the end of 2009.
Nearterm the $TNX is in a Cup & Handle formation and set to breakout over a multi-month resistance trendline. Itz Stock Chartz is forecasting 4.3% nearterm...5.25% amid increased supply and as the Fed ends its housing debt purchase program.
The Baltic Dry Index ($BDI) is an up and coming indicator, especially since it tracks- trade with China and basically they're a growing force in global growth. It appears that China maybe slowing down nearterm, which will affect the Itz Pix holding Genco Shipping (GNK) & iShares China ETF (FXI). Genco has found strong support around $19 level over the past 12 months.
Itz Pix Portfolio this week, the decline in the Euro ($XEU) has taken its toll on the commodity plays, tech held up, RIMM, GOOG, JNPR. The leaders have been the financial sector stocks, Itz has reported several times that they'd be needed to lead this market to higher levels (1,200 S&P500 target). Great moves on JPM & LNC as well as newly added CitiGroup (C), up nearly 12% in 2 weeks. Itz Pix exited (stopped out) of Market Vectors Gold Miners ETF (GDX) flat on the trade. Currently on the radar is the Jr. Miners (GDXJ) & Stillwater Mining (SWC), a palladium, platinum miner.