All other things being equal, why would rising unemployment data lead to (a trend) of increasing bond futures?
Is the line of thinking that bond futures prices have the same relationship with economic data points such as interest rates and inflation as do bonds?
-Unemployment rising signals a potentially weak economy and (for sake of argument), the probability of interest rates being cut in the near future increases
-Bond prices would increase as interest rates fall, and futures prices on these bonds would also rise.
If anyone could clarify, that would be very helpful.