London, July 7: September T-bond futures will look for some consolidation after Thursday's break higher, the market having had a long weekend with the US holiday on Friday, technical analysts said.

The contract rallied more than one point after Thursday's benign June payrolls report to form a high at 113-15.

"We are probably going to see some consolidation of that move today," said Gerry Celaya, senior technical analyst at American Express Bank. "I expect 113-15 will probably be tough to break."

At 10:20, GMT September T-bond futures were at 113-08 in automated trade, up 2/32 from Thursday's close. Celaya said the June 20 high at 112-24 was a key break for the market. "I would be looking for selling depth towards 112-24. We will maybe go down a bit, find support and then work our way back up," he said.

Some initial support was offered at 113-02, he said. To the upside, Celaya said a hold above 112-24 would lead to moves towards 113-15 and 114-00 later in the week.

Above there, he said there was resistance at 114-23 and then 114-26, based on continuation charts. Richard Adcock, manager of technical research at HSBC Futures in London, also said some consolidation was likely near term."Support has developed to see the upper limits of the trend channel tested, from which weakness has materialised over the holiday period," he said in a research note.

"With short term overbought readings in place the consolidation can be extended with tests of the previous resistance point (112-24) likely over the next few days."

But Adcock said the bullish picture was still very much in place and corrections would offer buying opportunities.

"Further to the downside stops should be placed under 112-08," he said.At the short end, December Eurodollars were at 94.055, up 0.010 on the day.Adcock said a bullish flag pattern projected the market up to 94.15."Short term corrections are a possibility but these will be well supported by the point of breakout at 94.000 where further buying opportunities will be offered," he said.

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