Clearly the?trend?has been?higher?in the last four?months?as June 30-yr bonds futures have climbed 8?handles.?This weeks consolidation?just?below?the 135’00 level?could?signal an interim top. A future trader could institute shorts with stops above the recent highs. Another?option?would be a?bearish?option?play?with an objective?of 132’00. June options expire on 5/23, the 133’00 strike?currently?costs?$625 per and has a delta of 33%. Risk the entire premium. Those that are?willing?to?trade?the curve could opt for?a?NOB?spread?(short 30-yr?bonds?and long 10-yr notes 1:1).?
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I?anticipate?higher trade in the coming weeks in?equities?and think money will flow out of?Treasuries.?Use the?Fibonacci levels in the chart below to help with price objectives.?

?041714Treasuries

 

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