BOND MARKET RECAP

December Bonds finished down 0-090 at 118-290, 1-040 off the high and 0-160 up from the low.

December 10 Yr Treasury Notes closed down 0-095 at 116-285. This was 0-075 up from the low and 0-270 off the high.

Technical Outlook
BONDS (DEC) 09/17/2009: Declining momentum studies in the neutral zone will tend to reinforce lower price action. The market's close below the 9-day moving average is an indication the short-term trend remains negative. The downside closing price reversal on the daily chart is somewhat negative. It is a slightly negative indicator that the close was under the swing pivot. The next downside objective is now at 117-150. The next area of resistance is around 119-240 and 120-220, while 1st support hits today at 118-050 and below there at 117-150.

10 YR TREASURY NOTES (DEC) 09/17/2009: Momentum studies trending lower at mid-range should accelerate a move lower if support levels are taken out. The close below
the 18-day moving average is an indication the intermediate-term trend has turned down. A negative signal was given by the outside day down. It is a slightly negative indicator that the close was under the swing pivot. The next downside target is now at 115-305. The next area of resistance is around 117-125 and 118-030, while 1st support hits today at 116-105 and below there at 115-305.