The 30 Year Treasury Bond futures rode along our uptrend line Tuesday, posting relatively slight losses considering the massive rally taking place in U.S. equities. Therefore, the Treasuries are showing investors aren’t quite sold on the upside of equities. Furthermore, the price of the 30 Year futures are finding comfort in the fact Fed Chairman Bernanke mentioned the Treasury is still considering the option of buying long-term notes in an effort to keep mortgage rates low. Additionally, the Treasury may need to find a way to keep the interest rates of the 30 Year Treasuries low since the government is issuing a record amount of bonds to support Obama’s huge economic stimulus plan. Overall, the 30 Year Treasury Bond futures should maintain their negative correlation with the S&P futures for the time being. Fundamentally, we find resistance of 127.78 with 2nd tier and bottom-end hanging at 128.42 and 129.30, respectively. To the downside, we see support of 127.01 with 2nd tier and bottom-end resting at 126.375 and 125.75, respectively. The 30 Year Treasury Bond futures are currently trading at 127 20.0.
