Dragging: The market remains under water with the yield on the 10-yr having tagged the 3.486% yield without much trouble as trade slows after a low end flurry of activity. The curve trade could take the 2-10-yr yield spread to 257.4. There is little left to do but watch stocks or stay out of the way. Orftech's Steve Orfanos this morning noted on the 30-yr futures "the short-term trend is neutral, while the intermediate and long-term trends remain bullish. Keep in mind it will take a move and settlement above 120-16 to confirm a bullish short-term bias. Today, look for more range trading as the USZ should trade between 119-13/11 and at least 120-16. If the lower level is broken, the Bond should test and hold above 119-01/00. Support can be found at 119-12, 119-01, 118-26... nothing significant until 115-13. Resistance should be met at 120-16, 120-24/25. On the 10-yr notes "to confirm a bullish outlook the TYZ needs to extend its gains above 118-27 and 119-01. Until then the Ten-year should consolidate and trade between 118-04 and either 118-27 or 119-01...support 117-25"