The 30 Year T-Bond futures are experiencing profit-taking Monday with a trend line inflection point approaching today. Therefore, we should witness some heightened volatility to kick off the weekend. The 30 Year futures are weakening in reaction to the realization China is slowly diversifying its foreign exchange reserves in an effort to reduce exposure to U. S. debt.

As a result, price is declining and interest rates rising in an effort to attract more investors to the escalating level of U. S. bond issuance. Nevertheless, the 30 Year futures remain wedged between the trading range from early February.

The futures should continue to do so until either February highs or lows are breached. However, when one of these levels breaks, expect very high near-term volatility.

Fundamentally, we see resistance of 127.01 additional resistances of 127.42, 127.91, and 128.56. To the downside, we find support of 126.64 with 2nd tier and bottom-end sitting at 126.08 and 125.34. The 30 Year Treasury Bond futures are currently trading at 126 26.5.

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