The September 10-year note is trading back to contract highs seen in early May. The Federal Reserve has slashed interest rates to nearly zero along with pumping $2 trillion into treasuries and MBS. Traders will be watching the June Chicago PMI which is expected to have an uptick from May’s reading. It should also be noted that Powell will be testifying in front of the House Financial Services Committee during trading hours today. The 10-year note contract had an open-interest increase of nearly 180,000. Traders will be positioning themselves ahead of Wednesdays release of the feds previous minutes.

10-year September contract has support 139’075 that it has found buyers at before in the short term. If this level fails we can see a quick re-test of 139’35 which has been greater support in the past. If these levels hold we may get a test of resistance at 139’140, a break of this we may test a greater point of resistance at 139’150.

10-Year Note Sep ’20 Daily Chart
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Greg Perlin

Senior Market Strategist
Greg is a former Chicago Board of Trade member. He was an independent floor trader, pit broker and floor broker with Cantor Fitzgerald. Some of his clients included traders from Morgan Stanley and Lehman Brothers. He also acted in the capacity of desk manager for the morning trade desk. Greg was part of the elite Lind Plus Division for 10 years before joining RJO Futures in 2011.
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