Market participants need to keep a close eye on U.S. Treasuries

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(Kitco News) - U.S. President Biden has just made a television appearance in an attempt to calm very jittery stock and financial markets. However, at the same time Biden spoke the U.S. Treasury bond and note futures markets’ prices are soaring higher on flight-to-quality buying of U.S. government det. During times of very keen trader anxiety, the U.S. Treasury markets are considered to be the supreme safe-haven sanctuary for many traders and investors. Gold prices are also seeing strong safe-haven demand and are at a five-week high, above $1900 an ounce. Meantime, crude oil prices are tanking and hit a three-month low on worries the U.S. financial crisis will crimp global economic growth. The U.S. dollar index has also sold off sharply the past two trading sessions.

Over the next couple days the most important market for traders of all markets to watch is the U.S. Treasury market. An old adage in the marketplace says that bond traders are the smartest guys/gals in the room. The key 10-year U.S. T-Note yield is presently fetching 3.47%, which is well down from levels that just recently pushed above 4.0%. If U.S. Treasury prices continue to rise sharply (yields fall sharply), such will be an indication that stresses in the U.S. financial system are rising. Look for the gold, silver and other market traders to take their cues from what’s going on in the U.S. Treasury markets over the next few days.