Financial Focus
October 9, 2026 

    GOOD MORNING!     US Treasuries have been bouncing up and down all week (attached).  Thursday was a re-play of Wednesday when the market started the day under stress due to oil prices rising, strikes on a ship in the Persian Gulf away from the Strait of Hormuz, hurricanes on both sides of the USA, Fed Governor Waller saying he anticipates additional rate hikes but have some flexibility on when they occur and St. Louis Fed President Musalem saying that more monetary policy firming will be required to bring inflation back to target in a timely manner only to flip-flop and reverse course and see prices erase earlier losses.  The market was under pressure until around mid-session when it reversed course again (flop-flip?).  like Wednesday, a catalyst was the Treasury auction.  The 30-year auction re-opening the current on-the-run long bond went well enough and a triggered a relief that supply was over rally.  About the same time the White House announced it wasn’t going to attack Iran before the mid-term elections.  That eased the price of oil off the session’s high, which, in turn, supported the gains in Treasury prices to the hi9ghs so far in the week and lowered yields across the curve.  Also flip-flopping was the recent love by investors for tech stocks, sending the NASDAQ down more than 1%.   
     

     The US markets have steadied overnight and are starting the day with stock index futures and Treasury yields leaning slightly higher.  The economic calendar is light today with just the very preliminary October University of Michigan Consumer Sentiment Index.  After that, there will be headlines and clock watching.  With Monday’s Columbus Day holiday (except for stocks) traders will positioning for a long weekend in a dangerous world and then try to sneak out early.