The 30 Year T-Bond futures logged only modest gains despite yesterday's broad selloff in U. S. equities. The 30 Year futures are following our downtrend to a tee, indicating they are still gravitating towards the downside.

Therefore, the 30 Year futures could be transmitting the same message as gold in that the present selloff in U. S. equities is only temporary. On the other hand, the selloff in the 30 Year futures could be disconcerting in the fact that the movement represents disinterest in the massive treasury auctions taking place to fund America's economic initiatives.

As a result, the downward movement in the 30 Year futures could indicate an insufficient impact from the Fed's use of quantitative easing due to booming supply and waning demand. We can't forget March 18th's historical rise in reaction to the Fed's announcement of quantitative easing, and we wouldn't be surprised to see high volatility return to the 30 Year futures shortly.

However, before we tread too far down the speculative path, we will take the current downturn in the 30 Year futures as a normal negative correlation with U. S. equities. The trend in the 30 Year futures remains to the downside barring a significant fundamental reversal.

Fundamentally, we hold our resistances of 127.05, 127.28, 127.64, 127.89, and 128.31. To the downside, we maintain our supports of 126.69, 126.45, 126.19, 125.91, and 125.47. The 30 Year T-Bond futures are presently trading at 126 31.5.

Copyright 2009 FastBrokers, Latest Forex News and Analysis for Forex, Bullion and Commodity Traders.  

Disclaimer: For information purposes only. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained. There is a substantial risk of loss in trading futures and foreign exchange.