Tuesday’s Outlook Of US Treasury Bond

The 30 Year T-Bond futures are finally logging some notable gains in the face of declining equities.  Hence, we could be witnessing the negative correlation with equities coming back into play.  However, the downtrend is still in control, and it will be difficult to convince us otherwise unless the futures should eclipse both our 2^nd tier downtrend line and April 15 highs.

On an encouraging note, April lows were well above March lows, setting the stage for an uptrend.  Hence, we’ll need to keep a close eye on the 30 Year futures to see if they can leap some key fundamental barriers should the selloff in U.S. equities boil.  Even if the S&P futures do crumble from present levels, considerable downward pressure on price from the oversupply of Treasuries could cap gains in the 30 Year.  Skepticism swept aside, we will take a wait and see approach as far as committing to an uptrend is concerned.

Fundamentally, we find resistances of 127.70, 128.20, 128.55, 128.83, and 129.20.  To the downside, we see supports of 127.28, 127.05, 126.75, 126.42, and 126.  The 30 Year T-Bond futures are presently trading at 127 10.5.

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