![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg29sOqZbW9WzDb2GRNFjYfjmpVO1X-xcP7bztsNJ0BSOzVAcSin6sx_Nx9Ipe5dS-w-_e6gL449XZ3zAGzvrNuSRXLS3985FzGi_hiitKDENovHrLPeaXNKBUTSYtPMQU3nsSIFQ/s400/072607+10+year+note+yield.jpg)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRlOliING3eJfbgn4SBQbfmeOWkkaTyd9s0PXD7l3SCz2mUWsl2kOlI7Qj0dsGfnZ-Qf_1iVxDORt27fsKNAnm5sAMSH46ChyMlhTmEsTOwVOsbd_QxiNjZEIsPQUJn3lHbpWprg/s400/072607+tyx+daily.jpg)
Here are daily charts of the September T-bond futures, the yield on the 30 year treasury bond, and the yield on the 10 year treasury note. I last commented on the bond market here.
I think the drop in yields and the rally in futures which started in mid-June is over. There is strong resistance in the futures in the 109-16 to 110-00 zone. I think the 4.95% yield in the 30 year bond and the 4.85% yield in the 10 year note will be the lowest yields seen for the next few months.
I expect the futures to drop to the 103 level by mid-October and think the 30 year yield will advance to 5.60% and the 10 year yield to 5.50% during that time. After that I think a big drop in yields lasting a year or so will develop.
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