T-bonds

Here is a 15 minute bar chart showing regular hours trading in the June T-bond futures.

Yesterday after the Fed announcement I said that the breakout to new lows below 109-31 looked like a fakeout to me. If I was to be right about that the market should have recovered this morning and stayed above yesterday's low at 109-27.

Instead the bonds dropped below 109-27 and and are maintaining the pace of the downmove on continuing high volume. I think this means that the June bonds will not move substantially above 110 before they drop to 108-16.