The SEP13 U.S. 30-year bond futures are down a somewhat significant amount of 1’19 points to 132’16. This is likely due to the higher revisions to last month’s retail sales number, causing more concern about Fed tapering that could be announced next month.
SEP13 crude oil dipped overnight, but is rallying back close to the $106 level. We believe this market is very susceptible to further upside, potentially soon approaching the $110 level, possibly higher.
We believe this bond futures market could be in for a short term rally to our market profile target of 135’20. The retail sales number came in slightly weaker, and this could be a short term bullish data point for the bonds.