Bond futures volumes surged in Asia trading hours after Japan’s central bank maintained ultra-loose monetary policy. Cross-border inflows into U.S. and Eurozone fixed income are likely to sustain demand. "Psychologically, I think that's why some people may not want to vote for the bond or this levy, is because it gives them some control over that tax burden," Neff continued. The stock market has had a rough history in October. The bull market in stocks continues, but the economic and geopolitical landscapes provide more than a few roadblocks. Moreover, October and the fourth quarter begin with a U.S. government shutdown as Democrats and Republicans have dug in their heels on ideological and political grounds. While past government shutdowns have not impacted stocks and other markets, this time could be different. The latest CFTC report shows speculative net longs in bond futures reaching a six-month high. This positioning reflects the consensus expectation of lower yields into year-end.
