Bond and Note Update

Earlier this morning I said that these markets should not rally more than 1/2 a box from their morning lows if my downside targets at 115-04 for the bonds and 111-00 for the notes were to be reached. In the event both the bonds and notes have indeed rallied more than half a box as you can see from the updated hourly charts above.

I conclude that the 115-11 low in the bonds and the 111-11 low in the notes ended the drop from the June 3 highs. I think the bonds are now headed into the 121-123 range and the notes to 116.