As Powell Lowers December Rate Cut Odds, Make This 1 Trade Now

Core Insights - March U.S. Treasury bond futures are currently presenting a selling opportunity due to recent price weakness, having reached a four-week low [1] - The U.S. inflation remains persistent, and the Federal Reserve's hawkish stance on monetary policy has raised concerns among bond traders regarding demand for U.S. Treasuries [2] - A breach of the support level at 116 in March T-Bonds would empower bearish sentiment and create a selling opportunity, with a downside target of 112 [3] Technical Analysis - The daily bar chart indicates a downward trend in March U.S. Treasury bond futures, with the MACD indicator showing a bearish posture as the red line is below the blue line [1] - Technical resistance is identified at 118, where protective buy stops should be placed [3] Market Sentiment - Concerns are growing about reduced demand for U.S. Treasuries from countries that traditionally hold them in their sovereign reserves, contributing to bearish sentiment in the futures market [2]