The market remained offered in afternoon trade with a reasonable seller seen in the long end markets closing just off session lows, profit taking finally emerging. Treasuries have drifted away from historical highs as profit taking emerged following the recent surge, notes losing more than half a basis point, nonetheless the market remains wary of Euro zone events & has one eye on Bernanke's address to Congress on Thursday. Locally we have retreated further losing roughly a half dozen ticks in most maturities as profit taking continues ahead of today's rate decision. The consensus appears to be a 0.25% cut, however we do have a push for 0.50% by some analysts. The market had appeared over cooked & the market has held the resistance areas mentioned yesterday & at face value these areas hold the key to further gains, I would look to fade any moves into these areas 10/12 (3's) & 36 (10's) with stops above on a DAILY closing basis.
YT SYCOM CLOSE: 97.97 HIGH: 98.03 LOW: 97.95
RESISTANCE 98.01, 9803/05, 98.07, 98.10/12**, 97.15
SUPPORT 97.94/95, 97.89/90*, 97.84/85, 97.80/81**
XT SYCOM CLOSE: 97.235 HIGH: 97.30 LOW: 97.225
RESISTANCE 97.26, 97.29, 97.31, 97.35/36**, 97.38
SUPPORT 97.21/225, 97.175*, 97.135, 97.10/115**