A late bout of selling saw the market shed a couple of ticks into the close. Overnight has seen treasuries firmer as poor Retail Sales & inflation data saw buyers flood the market as the Euro zone back drop continues to see risk appetite on the wane. Adding to the sentiment was solid demand for the 10 year note auction ensuring treasuries recouped the previous session's losses. The local market has picked up the best part of 10 ticks in both bond markets & we will open near the top of our suggested brackets - 70 (3's) & 10 (10's) & with the Greek election edging closer one would expect a test of these areas. In normal circumstances I would be keen to fade this strength however these are not normal circumstances & it appears short covering as we head into the weekend may be enough to see the market punch higher. The question is in my view will the move be seen today or will buyers hold fire until tomorrow.
YT SYCOM CLOSE: 97.68 HIGH: 97.68 LOW: 97.53
RESISTANCE 97.68, 97.71/72**, 97.75, 97.78/79
SUPPORT 97.635/65, 97.59*, 97.56 97.54, 97.49/51**
XT SYCOM CLOSE: 97.085 HIGH: 97.085 LOW: 96.95
RESISTANCE 97.09, 97.12/135*, 97.175, 97.21, 97.245/25*
SUPPORT 97.04, 97.005, 96.975, 96.95, 96.92, 96.89/90*