The 30 Year T-Bond futures tumbled back below our downtrend line on Friday as the S&P futures continued their upward momentum. The movement was a strong reversal and the 30 Year futures dipped below March 24 lows.

The futures are recovering Monday morning and are trading right at our downtrend line in reaction to the S&P futures pointing towards a lower open in U. S. equities.

The 30 Year futures continue to show an inclination towards the downtrend since March 18th's historical surge. The weakness in the futures is a bit disconcerting since the Fed's implementation of quantitative easing was supposed satisfy the rising supply and buoy interest rates to keep U. S. debt attractive.

Rate pressures up to within striking distance of 1.5000 overnight; likely offers will be thick on any further advance. Aggressive traders can look to lighten up on longs above 1.4950 area. Stops noted above the 1.4880 area on the way up with traders noting stops under there on the way down.

Rate consolidates and holds gains but is capped at 1.3580 with stops likely above 1.3600 now. Rate is solid above the 100 day MA. Traders note offers above the 1.3630 area but bids continue to support ahead of 1.3480; foothold over the 1.3500 handle likely to encourage a short-squeeze. Rate likely has stops building in both directions; shorts lose control of the market after rate clears stops above the 1.3430 area.