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Chart of the Day - 10 Year Notes

Published 01/30/2024, 02:11 PM
DX
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The most important chart ahead of tomorrow.
10 Year Treasury Yield Chart
Tomorrow we will have a lot of information and data given to the market. Everything from the QRA (quarterly refunding announcement) from the Treasury to know what the allocation (or mix) of supply will be for the market between bills/notes/bonds. Then we will have private job data from the ADP. Following that we will have the ECI (Employment Cost Index), and then a few hours later we will hear from the Fed Chair, Jerome Powell, and the FOMC. 

In the meantime, the 10-Year notes market looks poised to rally in a "bull flag pattern" setup which does suggest a continuation of note market strength and ultimately US Dollar weakness. However, a break of the 38% retracement at 110'09' would suggest otherwise and in that case, we could see the US Dollar really take off to the upside as the bond market nullifies the pattern and looks to correct further below 109'00.

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