US 10-Year Futures Target Fibonacci Retracement Next

Interest rates crept higher to start the new week amid ongoing debt ceiling negotiations. US 10-year futures failed to reclaim the 114 region which previously served as support a month ago, suggesting momentum for higher yields is still clearly in place. As a result, 2-year and 10-year yields have both exceeded their key 50% retracements, which highlights a key obstacle that has been cleared. Stocks, meanwhile were mixed as technology shares continue to outperform, which has NQ futures poised to test the 14k threshold sometime soon. E-mini S&P 500 futures managed to maintain Friday's lows, which if held could create a short-covering rush to the exits given the record short position large speculators as seen in the latest CFTC imm report.