U.S. GOVT BONDS

Long-term base formations are powerful and breakouts from these chart patterns should be taken seriously. In April, the 30 year U.S. government bonds broke out of an inverse head and shoulder pattern. Breakout above 135.3 levels confirmed the bullish chart pattern which was followed by a pullback. Now we are seeing the continuation of the earlier strength.

Another bullish chart pattern, falling wedge is developing on the 10 year U.S. treasuries. Breakout above 126 levels will confirm the bullish chart pattern on the 10 year T-Note. Technical outlook remains positive for both instruments. (Earlier analysis on the U.S. governments bonds is here)