The 30 Year T-Bond futures are leveling off following Wednesday's fundamental gains in reaction to the Fed's decision to implement quantitative easing. The profit-taking is reflected across the 5 and 10 Year Notes as well.

However, such a large move should have its ramifications, and we would not be surprised to see the U. S. Treasuries continue on their upward path for the near-term. However, the question becomes whether the 30 Year futures can climb past the drudges of the January trading range to get back to making comfortable gains.

Otherwise, there is always the possibility of the downtrend taking hold again if China's taste for U. S. debt should sour and quantitative easing prove unsubstantial to cover the necessary liquidity to fund the government's economic stimulus measures. These are interesting times to say the least, and we will have to wait and see how the situation plays out.

Fundamentally, we see resistance of 132.39 with additional resistances hanging at 132.98 and 133.36. To the downside, we find supports of 131.34, 130.95, 130.53, and 130.11. The 30 Year Treasury Bond futures are currently trading at 131 17.5.

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