March T-bonds closed up 20/32 at 129-17.
March T-bonds closed higher on Monday as it consolidated some of the decline off October's high. Stochastics and the RSI are diverging and are turning neutral hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing at 130-07 are needed to confirm that a short-term low has been posted. If March extends the decline off October's high, weekly support crossing at 125-29 is the next downside target. First resistance is the 20-day moving average crossing at 130-07. Second resistance is the reaction high crossing at 131-09. First support is last Friday's low crossing at 128-01. Second support is weekly support crossing at 125-29.