The Fed Could Cut Rates Another 0.5%. Make This 1 Trade First.

Core Insights - December U.S. Treasury bond futures are showing a bullish trend, having reached a 6.5-month high this week, indicating a potential buying opportunity [1][2] - The U.S. economy is exhibiting enough weakness to suggest that the Federal Reserve may lower interest rates by at least 0.5% in the near future, which is favorable for U.S. Treasury prices [2] - A breakout above the chart resistance at this week's high of 118 25/32 in December T-Bond futures would signal a buying opportunity, with an upside price target of 125 or higher [3] Technical Analysis - The daily bar chart for December U.S. Treasury bond futures shows prices trending higher, supported by a bullish MACD indicator, where the blue MACD line is above the red trigger line [1] - Technical support for placing a protective sell stop is identified at 116 even, providing a risk management level for potential trades [3]