There was a lot of volatility during January, with market after market making wild price swings. The exception, as usual, was US 30-year T-bonds as the nearby March futures contract continued its slow and steady extension of the market’s major (long-term) uptrend. March posted a new 4-month low of 167-11 before closing at 168-23, still down 4-15 for the month. With monthly stochastics still well above the oversold level of 20% there seems to be ample momentum and room for the market to test its initial price target of 165-11 and possibly the second target or 159-27. These are the 38.2% and 50% retracements levels of the previous uptrend from 136-16 (October 2018) through the high of 183-06 (August 2020). Note I continue to view the extreme activity during March 2020 as an outlier. The downtrend in bond futures indicates bond yields should continue to move higher, implying the market is still looking for higher interest rates over time. Eventually, this could be what sparks a round of buying in the US dollar, with the US dollar index posting a bullish spike reversal on its monthly chart during January.