The larger than expected print of 40 k jobs saw sellers quickly gain control & we quickly traded to the low 60"s (3's) & the high 90's (10's) before the market steadied. An uneventful afternoon looked likely to emerge as the market held it's ground however sellers re entered to create new lows, the long end closing on support located just below 97.00. Overnight has seen another hectic session with the market having to digest an easing in China, strong US confidence data & Bernanke's failure to indicate definitive timing for any further stimulus saw the roller coater in action. Treasuries have edged higher as equities have come off their highs. Our market has closed a little softer however losses were trimmed into the close & at face value we look to set to repeat the overnight price action unless we see an interested buyer early in the piece. A bond tender to digest today as we head into the long weekend, therefore I would expect profit taking to emerge at some stage. Weakness now through the 96.89 (10's) & 97.49/50 (3's) would indicate the weakness is not yet exhausted however this would be a surprise if it were to occur today.
YT SYCOM CLOSE: 97.58 HIGH: 97.62 LOW: 97.50
RESISTANCE 97.62, 97.64*, 97.67/68, 97.70/71, 97.74
SUPPORT 97.54, 97.49/51**, 97.45, 97.42/43, 97.40
XT SYCOM CLOSE: 96.96 HIGH: 96.995LOW: 96.905
RESISTANCE 96.995, 97.02, 97.05/07, 97.10, 97.12/135*
SUPPORT 96.92, 96.89/90*, 96.86, 94.84, 96.81/82*