T-bonds

Here is an hourly chart showing regular hours trading in the September T-bond futures. I last commented on this market here.

I think the bonds are in the middle of a three phase drop from the 108-16 level. This correction should carry the market to support at 106-04. Meantime I am expecting a second phase rally from support at 106-28 to resistance near 107-20.

I think there is a very good chance that the May low at 105-06 in the September contract will be the low for 2006. In any event I expect the bond futures to trade into the 110-111 range over the next few weeks.