Bonds drifted lower a little lower toward support at 137^25 today. Once over 138^17 again, the short term goal should be to rise to 139^08 or 139^25 to put the finishing touches on wave ii.
Bonds have moved a little higher this morning after testing initial support at 138^03 but think it best not to be too eager as a test of 137^24 in a deeper [B] is possible. Once [B] is set, the main target area for [C] of ii is 139^17 to 139^26.
It would be nice to have bonds higher near the daily moving averages before the end of wave ii. However, the dominate short daily cycle is nearing a high and also have the Lomb Periodogram forecasting a cycle high. Perhaps best to have a short bias while under 138^17.
Bonds would look better with more of a bounce to the 139^26 area.
Before looking at bonds, here is a chart of the 30 year Treasury yield. Yield has broken above the long enduring channel. The next cycle inflection is March of next year which suggests this break has several more months to run.