TECHNICAL UPDATE: 10-YR TREASURY PRICES BOUNCING OFF OF SHORT-TERM SUPPORT ON BAD JOBS DATA

The futures on the 10-Year US Treasury Note Price (@TY) have come down recently as rates rose in conjunction with the US equity markets' continued rise to new all-time highs. The decline in TY prices looks like it came in the form of an “abc” downside correction. That correction has brought prices down to key support at 124'26.5. From that level, a move up back up to around 125'28.5 is what technicians are expecting. Technicians believe that treasury prices are range bound between the August highs and this week's lows (August lows and this week's highs for Treasury yields) for now. Technical traders are likely to be buyers of TY futures near 124'26.5 (2.487% on the 10-Year T-Note yield) and sellers near 125'28.5 (2.305% to 2.333% on the 10-Year T-Note yield).