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Today the 10-Year Bond broke a rising trend line as well as short-term horizontal support. This was something we anticipated as we watched the trend line accelerate off the August low. The daily PMO is unusually overbought and has crossed down through the signal line. Initial downside targets are 15.90 and 14.95.
The 30Year Bond broke trend yesterday, and support failed today. The daily PMO is in a similar configuration as the 10-Year, and we expect to see some pullback. We also anticipate that the pullback will be far less than many would like. The first two potential downside targets are 22.20 and 21.70.