Zn futures market sentiment surveys show 58% of

Market sentiment surveys show 58% of fixed-income strategists expect "ZN futures" to be higher in 30 days, a notable shift from just 42% last month, suggesting turning momentum. Traders should act decisively. Buy call options on ITA and XLV in mid-September to capture budget-driven rallies. Hedge equity exposure with SPY puts if shutdown risks rise—look for VIX spikes above 20 as a trigger. In futures, go long on 10-year Treasuries (ZN) contracts if yields trend lower, but short EUR/USD if the dollar index breaks 100. Commodity traders could buy copper and lumber futures in late September, aiming for higher returns by December, as commercials will accumulate these products for the upcoming home-building season. Long-term investors may consider overweighting defense (Lockheed, Boeing) and infrastructure (Caterpillar, Vulcan Materials (VMC)) in portfolios, but trim retail exposure (e.g., XRT ETF) if shutdown talks heat up. Track Treasury announcements and CBO reports frequently for real-time sentiment shifts in late September. Example 2: The monthly U.S. non-farm payroll number on the first Friday of a month comes out significantly weaker than expected. This indicates a surprisingly weakening economy. As a result, Treasury yields decline, and U.S. Treasury futures prices rise. A trader notices that the March 2014 10-Year T-Note futures have responded to the report by posting modest rally from 125 05/32 to only 125 15/32. He believes that the weakness in the number was a significant surprise and more participants will soon need to buy notes. Liquidity in the "ZN futures" order book has improved by 15% since mid-February, potentially reducing execution slippage for institutional baseline hedging trades.