T-bonds

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

This morning's CPI number pushed the market below what I thought would be 106-20 support but then Bernanke's testimony pushed it back above that level. I think the bonds are now headed for 108-20. This in turn is part of a rally into the 110-111 range. I also think that it is likely that we have seen the 2006 low in the bond market.