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INTEREST RATES

December T-bonds closed down 11/32's at 117-26.

December T-bonds posted an inside day with a lower close on Monday. The low-range close sets the stage for a steady to lower opening when Tuesday's day session begins trading. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If December extends the rally off October's low, the 50% retracement level of this year's decline crossing at 120-17 is the next upside target. Closes below the 20-day moving average crossing at 115-08 would signal that a short-term top has been posted. First resistance is Monday's high crossing at 118-10. Second resistance is the 50% retracement level of this year's decline crossing at 120-17. First support is the 20-day moving average crossing at 115-08. Second support is the 50-day moving average crossing at 112-27.

December T-notes closed down 115-pts. at 109.315.

December T-notes posted an inside day with a lower close on Monday as it consolidates some of last-Friday. The low-range close sets the stage for a steady to lower opening when Tuesday's session begins trading. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If December extends the rally off October's low, the 50% retracement level of this year's decline crossing at 120.17. Closes below the 20-day moving average crossing at 108.229 would signal that a short-term top has been posted. First resistance is Monday's high crossing at 110.140. Second resistance is the 50% retracement level of this year's decline crossing at 111.246. First support is the 20-day moving average crossing at 108.229. Second support is the 50-day moving average crossing at 107.223.