10 Year Note Futures

The 10 year note in the March contract is currently at 120/23 trading higher for the 2nd consecutive session after settling last Friday in Chicago at 120/18 having a hard time cracking through the 120/00 level was that has been tested on multiple times only to rally. I’ve recommended a bearish position on several contracts over the last several months if you took the trade the stop-loss come Monday’s session will be lowered to 121/07 as the chart structure is outstanding due to the fact of the low volatility.

The 10-year note is currently yielding about 2.86% as it is unable to crack the critical 3% level in recent weeks, however, I still remain bearish as I think this is just the calm before the storm as I still believe higher interest rates are coming.

The U.S stock market is higher this Friday afternoon as generally, that sends a bearish tone towards the bond market, but not in today’s case as we will await next Friday’s monthly employment number which should send high volatility back into the bond sector so stay short & continue to place the proper stop loss & lets see what Mondays trade brings.

The 10-year note is still trading far below its 20 and 100 day moving average as clearly the trend still to the downside despite the recent rally over the last couple of days as I will be looking at adding another short position if the 120/00 level is broken possibly in next weeks trade.

TREND: –LOWER

CHART STRUCTURE: EXCELLENT

VOLATILITY—LOW