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Bonds On Support Again

Submitted by Anonymous on Fri, 04/02/2010 - 10:51

By Nic Lenoir of ICAP

We are back testing the support on the daily chart in bonds today following NFP. Number did not beat expectations but speculative pressure and fear of a discount rate hike next week (we think it probably won't happen and if it does it should not impact rates materially) helped push the market lower. The support here is key at 114-25, if we break below the next level is 111-26. Looking at the 30-minute chart, I think we have a very clean ABC formation and the next move could well be up. Since we are right on support I would look at being long via option structures, and quickly reverse to shorts if we close below 114-25.


Have a good weekend for those who made it in!

Nic