Looking at the December 10-year note, we had a high overnight at 138-16.5 and a low of 138-06 and we’re currently trading at 138-07. The note has been acting well with ongoing shutdowns across the US due to the ongoing and relenting spread of the virus. The good news is for everyone is that a vaccine is coming shortly but with that news, brings up the question on a few important items.  How fast can it be distributed? How do we store it to keep it fresh?  I have heard it can only be stored in -50 degrees and many hospitals around the country lack the ability to store it. So, it will be interesting how quickly they adapt to what they need to keep the vaccine safe. Another important thing that many are not talking about is how many people are going to take it once distributed. I think a fear some have is that it was rushed and are skeptical to take it because of the unknown. IE, side effects.

Technically the 10-year note has good support at 137-28 and more down at 137-21.  On the upside I see resistance at 138-1655 todays high and more at 138-24-25 level.

10-Year Note Dec ’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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