The technical take on long bonds

Long bonds took it on the chin again today, losing a half point in price. It seems many of those speculative bets on higher prices that I've been talking about for a while now are being unwound. A Bloomberg story also said that an updated, internal Fed report paints a less optimistic picture on the inflation front.

Whatever the reason, the fact remains that long bonds are at a key technical support level -- roughly 109 1/2 to 110. These levels held on several tests back in August and September (shown in the chart above). Will they hold now? We could get an answer on Wednesday. That's when we see what the Fed has to say publicly after its latest interest rate policy meeting.