FED: US TSY 29Y-10M BOND AUCTION: NON-COMP BIDS $49 MLN FROM $22.000 BLN TOTAL

• Donald J. Trump on Truth Social:
• I have just been informed by our Great Military that last night the Iranians shot down one of our highly sophisticated Apache Helicopters while patrolling over the Strait of Hormuz. There were two pilots involved, both are safe and uninjured. Nevertheless, the United States must, of necessity, respond to this attack. Thank you for your attention to this matter! President DONALD J. TRUMP

• US Data/Speaker Calendar (prior, estimate). All times ET
• 06/10 0700 MBA Mortgage Applications (-2.5%, --)
• 06/10 0830 CPI MoM (0.6%, 0.5%), YoY (3.8%, 4.2%)
• 06/10 0830 Core CPI MoM (0.4%, 0.3%), YoY (2.8%, 2.9%)
• 06/10 0830 Real Avg Hourly Earning YoY (-0.3%, --), Weekly (-0.2%, --)
• 06/10 1130 US Tsy 17W bill auction
• 06/10 1300 US Tsy $39B 10Y Note re-open (91282CQQ7) auction
• 06/10 1400 Federal Budget Balance ($215B, -$282B)
• Source: Bloomberg Finance L.P. / MNI

• RES 4: 111-02+ High Apr 24
• RES 3: 110-28+ High May 7
• RES 2: 110-04   50-day EMA
• RES 1: 109-18/110-00+ 20-day EMA / High May 29
• PRICE:‌‌ 109-06+ @ 17:21 BST Jun 9
• SUP 1: 108-25   Low Jun 08
• SUP 2: 108-08+ Low May 19 and the bear trigger 
• SUP 3: 108-04   1.382 proj of Apr 17 - May 4 - 7 swing
• SUP 4: 107-29   1.618 proj of the Apr 17 - May 4 - 7 price swing

Treasuries traded lower Monday and only partially retraced those losses into the Tuesday close. Recent weakness has reinforced a M/T bearish theme and potentially provides an early signal that the corrective cycle that started May 19, is over. Note that recent gains have allowed an oversold trend condition to unwind. Resistance to watch is 110-04, the 50-day EMA. The bear trigger lies at 108-08+, the May 19 low. Clearance of this level would confirm a resumption of the downtrend.