ZN - 10 Year Note Futures / An important Chart 10-YEAR T-NOTE FUTURES (CONTINUOUS: CURRENT CONTRACT IN FRONT) CBOT:ZN1! HK_L61 The importance of ZN as an Instrument cannot be overstated. It has been extremely technical and Reliable in assisting us in forecasting Rate Mid Curve and provided the ROC's for TNX . Today's MAcro Data begins with the CPI @ 8:30 AM EST using the new Base Effect from the BLS . ______________________________________________________ CPI is projected to be 4%. Food prices have already increased substantially into 2022 as we indicated Mid-Q4 2021 - Pordiucer were going to begin passing along increases at an average rate of 20-23%. Energy continues to Rise as do Commodities , on balance, across the Board. M2 continues to move higher, as does the Fed's Balance Sheet . _______________________________________________________ The reaction to the CPI this morning will provide direction for the Indexes the balance of the week. Pricing Power is being passed along to end-users (consumers) at a time when the Federal Reserve is indicating they are about to begin an aggressive reduction in Liquidity and an accelerated pace of increases to the Fed Funds Rate. We have seen back to back ALGO driven increases in the ES / NQ / YM and indicated 10 Yr Yields would pullback ~ 1.81% (1.808 was close enough). 2021/2022 measured move is now .998 to 1.808 - a near doubling of the Mid Curve. ________________________________________________________ The Bond "safety" Trade wasn't entirely wrong until the Curve began to work its magic. We indicated in July Rates would begin rising again into the end of 2021. Where the Bond Buters lost sight of the Safety Trade was quite simple - Convention holds only when the Yield Curve is steepening. As YCC gave way to a FED backstop where the recycling ballooned the Fed's Balance Sheet and Auction after failed Auctions began to appear beginning at the long end of the Curve. My Thesis proved 100% correct, then as now. We anticipate a reaction to Mid Curve on today's ReCalc. Safe Trading.