Important Session

Yesterday, in an otherwise boring session, the 10 day crossed over the 20 day for the first time since May 7 cross down. Also the market closed for the 2nd consecutive day over the 20 day. These signals usually trigger a change in position for the CTA community and closing of short positions.

Testimony will introduce near term volatility but I do not see it overtaking the powerful convergence/stability trade that has quickly set in. The 5 year note has a near identical set up.

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