The 30 Year T-Bond futures are fighting back above our 2nd tier downtrend line and February lows as the U.S. equities prepare to open with steep losses.  The 30 Year futures have shown a muted reaction to the upside considering the significant selloff taking place in the S&P on Friday. 

Therefore, investors are showing concern over the massive increase in supply of long-term treasuries to fund the government’s new stimulus packages.  With most of the world’s economies hurting in the global contraction and state of the U.S. economy thrown into doubt, the U.S. is finding fewer buyers interested in its debt. 

As a result, yields are rising and price falling, keeping the 30 Year T-Bond futures artificially constrained considering the usual positive correlation they have with U.S. equities.  With our uptrend rising out of reach, we may see only modest gains and even losses in the 30 Year T-Bond futures should U.S. equities crumble. 

Fundamentally, we find resistance of 126.64 with 2nd tier and bottom-end hanging at 127.25 and 128, respectively.  To the downside, we see support of 125.75 with 2nd tier and bottom-end resting at 124.98 and 124.36, respectively.  The 30 Year Treasury Bond futures are currently trading at 125 28.5.

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