Seven Factors Boosting Treasuries

Chain store sales: Signs of strain are surfacing in the chain store figures, with the year-over-year comparisons holding near +2.0% recently, well below normal readings of 3.5% to 4.0%. The figures suggest strain from housing and from high energy costs. Should these signs of weakness continue, the nascent rebound in factory activity will end perceptions about the economy would change and tilt back toward the idea of an interest rate cut.

Consulting reports: There are always consulting reports floating around, and in today's edition of one widely followed report is the notion of no change in Fed policy and of a delay in the ECB's next rate hike to October instead of September.

Technicals: The bond market has obviously been technically oversold and is now consolidating recent losses.