U.S. T-Bond futures positioned for breakout

U.S. Treasury Bond Futures Poised for Another Bullish Breakout

U.S. Treasury Bond futures are setting up for another upside breakout as the technical backdrop stays firmly bullish. The early September breakout from a 4-month basing pattern remains intact, and the late September pullback provided a healthy retest of the breakout (see our 9/25 blog post) that has carved out a fresh base of support.

As long as prices hold above 118'00, the immediate pattern is bullish. A decisive push through the recent highs near 118'21–118'25 would confirm renewed momentum and open the door to upside targets around 120'08 and 121'14 - 121'18.

If there’s a pause before the next leg higher, 117'16–117'12 offers an additional layer of support.

Overall, the technical picture continues to point toward strength — suggesting that the T-Bond rally may have more room to run.

Chart 1: U.S. Treasury Bond Futures