10-YEAR T-NOTE

Thu 5/23/02

     The June 10-year T-Note posted an overall low of 105-160 during Tuesday night's a/c/e session. TYM opened higher yesterday and traded sideways to higher the entire session before settling +12 ticks at a 2- 3/4 month high settlement of 106-000. The contract posted a 3-week high of 106-020 and a pit session low of 105-235. The cash note settled +11 ticks at a 2-week high settlement of 98-09 (5.102%). The 9-day RSI rose to 61.8 from 57.4 where it is neutral. Volume for Tuesday's session was 353,684 contracts while open interest fell -4,805 contracts to 822,177. Estimated volume for yesterday's session was 375,000. The short term trend is now cautiously bullish with yesterday's 3-week high and 2-3/4 month high settlement and last Tuesday's 1-month low and low settlement. The intermediate term trend is neutral with the note trading near the top of a 5-month range. The long term trend is bearish with the contract within striking distance of penetrating the December 17th contract low. The unweighted NOB (TYM-USM) fell -3 ticks yesterday to close at 140. Primary resistance levels for TYM are: 106-020, 106-050, 106-095, 106-120, and 106-250. Support levels for TYM are: 105-160, 105-035, 104-265, 104-080, 104-010, and 103-210.


BASIS DATA: Cash 4-7/8% note (TYM02)(.9194) Basis: 27/32 Unch.

SUPPORT/RESISTANCE LEVELS -- 10-YEAR T-NOTE FUTURE (TYM02)

112-130  All time high (TYZ01, Nov 1)
109-285  Contract high (Nov 7)
108-290  4-3/4% cash yield (BASIS@27)
107-270  4-7/8% cash yield (BASIS@27)
106-250  5-00% cash yield (BASIS@27)
106-120  6-month high (Feb 22)
106-095  3-month high (Feb 28)
106-065  5-1/4 month high settle (Feb 27)
106-050  2-3/4 month high (May 1)
106-020  3-week high (Yesterday)
*106-000 2-3/4 month high settle (Wednesday)
105-275  Pivot Point
105-250  5-1/8% cash yield (BASIS@27)
105-235  Yesterday's pit session low
105-205  3-day average
105-160  Yesterday's overall low (a/c/e)
105-035  Tuesday's low
104-265  Monday's low
104-240  5-1/4% cash yield (BASIS@27)
104-175  100-day average
104-145  1-month low settle (Last Tuesday)
104-100  50-day average
104-080  1-month low (Last Tuesday)
104-010  1-1/4 month low (April 18)
103-240  5-3/8% cash yield (BASIS@27)
103-210  1-1/2 month low (April 9)
102-240  5-1/2% cash yield (BASIS@27)
102-095  Contract low settle (March 20 & 14)
102-010  2-month low (March 25)
101-290  2-1/4 month low (March 21)
101-235  5-month low (March 15)
101-100  Contract low (Dec 17)

RETRACEMENTS-- 10-YEAR T-NOTE FUTURE (TYM02)
6-1/4 month 8-18.5/32 point downmove from 109-285 (11/07/01) to 101-100 (12/17/01)       59% retrace (Feb 22 high) 106-120

HIGH    3/4     2/3     .618    1/2     .382    1/3     1/4     LOW
109-285 107-240 107-010 106-195 105-195 104-190 104-055 103-145 101-100

SUPPORT/RESISTANCE LEVELS -- CASH 10-YEAR T-NOTE (4-7/8% of 02/07)

106-10  All-time high (Nov 1) (4.101%)
105-18  All-time high settle (Nov 7) (4.190%)
102-31  4-1/2% cash yield
101-31  4-5/8% cash yield
101-30  6-month high (Dec 4) (4.629%)
100-31  4-3/4% cash yield
100-21  5-1/2 month high (Jan 16) (4.791%)
100-20  4-month high (Feb 22) (4.796%)
100-11  6-month high settle (Feb 22) (4.831%)
100-00  4-7/8% cash yield
 99-01  5-00% cash yield
 98-28  2-1/2 month high (May 1) (5.022%)
 98-18  2-1/2 month high settle (May 3,
        May 4 & April 26) (5.063%)
 98-12  2-week high (Yesterday) (5.089%)
 *98-09 2-week high settle (Wednesday)
98-03  5-1/8% cash yield
97-25  Yesterday's low (5.168%)
97-05  5-1/4% cash yield
96-27  1-1/2 month low settle (Last Tuesday) (5.294%)
96-20  1-1/2 month low (Last Tuesday) (5.323%)
96-07  5-3/8% cash yield
95-27  10-1/2 month low settle (April 1) (5.424%)
95-15  11-1/2 month low (April 2 & March 15) (5.475%)
95-10  5-1/2% cash yield
94-31  17-1/2 month low (5/29/01) (5.534%)
94-13  5-5/8% cash yield
92-12  19-1/2 month low (11/7/00) (5.895%)
92-04  21-1/2 month low (9/21/00) (5.927%)
90-10  23-month low (7/19/00) (6.185%)
87-20  2-1/4 year low (5/9/00) (6.579%)

Note: Prior to the auction date of (02/06/02) for the 10-yr cash note (4-7/8% note of 03/12), a "synthetic" price history is used based on the yield of the benchmark 10-yr note.


RETRACEMENTS-- CASH 10-YEAR T-NOTE: Retracements calculated from cash
note yield, not price. 2-year 18-22/32 point upmove from 87-20 (6.579%) (5/9/00) to 106-10 (4.101%) (11/1/01)       55% retrace (April 2nd & March 15th) (95-15) (5.475%)

HIGH   1/4    1/3    .382   1/2    .618   2/3    3/4    LOW
106-10 101-07 99-19  98-21  96-14  94-08  93-12  91-29  87-20
4.101% 4.721% 4.927% 5.048% 5.340% 5.632% 5.753% 5.960% 6.579%


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