The bond market continued to edge higher in the first part of April, but then the Chicago River drained the T-bond market of its liquidity, flooding out T-bond and T-note futures trading.
The bond market sagged in the first half of March as the economic outlook improved, deficit dears increased and the crowd of early 1992 bond market bulls pulled in their horns.
The T-bond market continued its slide in the first hald of February, extending the peak to trough decline to 60 basis points.
Most of January was a downhill ride for the bond market, although high yield (junk) bonds typically moved up 2 or 3 points.
In November, long and short rates did not move together, but in December they sure did.
· The higher-highs/higher-lows pattern since the 10-year yield trough in January is encouraging but the bigger test is the 225-230 area.