The rally in the 30 Year T-Bond futures faded yesterday after the U.S. released better than expected housing and manufacturing data, sending equities higher and treasury futures lower. 

However, the 30 Year futures are recovering Thursday after the U.S. released more negative unemployment data.  Hence, with the U.S. taking care of the excess supply of treasuries via quantitative easing, the 30 Year futures are falling in line with their ordinary negative correlation with the S&P futures. The futures are struggling with the concept of retesting March highs.  There’s certainly a wide range the 30 Year futures have to deal with to the upside.  Therefore, the futures have their work cut out for them. 

Investors will wait to see if the S&P futures can climb through their 2009 highs.  If so, we can see the reversal in the 30 Year futures pick up speed to the downside.  Fundamentally, we maintain our resistances of 130.047, 130.563, 130.969, and 131.547.  To the downside, we hold our supports of 129.406, 128.984, 128.516, and 128.063.  The 30 Year T-Bond futures are presently trading at 129 31.0.

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