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Bonds at resistance

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Stocks benefited today from the selling in bonds, but the party might be wrapping up.

30-Year Treasury Bond yields and futures daily chart

Last week 30-year Treasury bond yields broke our downtrend, but prices didn't confirm. Today prices confirmed, and then some. T-Bond prices fell all the way to the previous low at 102'09. The bad news is that prices may not fall much further. Just below today's low sits another level of support at 101'23. Looking at the yield chart shows a similar picture. Prices met resistance at the 200-day moving average, and have a previous high at 56.89 to deal with. With the Producer Price Index, retail sales, and consumer sentiment numbers being released this Thursday, it could be a wild ride in the bond market.

Jeffrey Canavan
Assistant Analyst

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