Looking at the December 10-year note, we have a high of 130-24 that came early last night and a low of 130-065 and currently trading 130-10. Some big news came out this morning as President Biden intends to nominate Jerome Powell for a second term as Fed chair. The stock market rallied on the news and the note fell. As dovish as Powell has been, the market believes he is less dovish as Fed Brainard so that’s why were seeing price down and yields up. The note market rallied late last week on continued talk that China and Japan were going to release oil reserves in hopes of increasing supply to the market as OPEC does not seem willing to increase production. Soon after the rumor about China and Japan, WTI fell around $3 as most traders don’t believe that the release will do much in the long run and as a result the price of crude has stabilized and is currently up 77-cents at 76.70.

Looking at technicals, we are still in a bear and the inability for the December 10-year to hold gains over the key 131-00 puts the low ff the move at 129-31, which is a double bottom that we saw on October 21 in focus.   A close below that key level brings 128-28-31 in play.