Stronger Start Making Case For Support

Whether it was the economic headwinds implied by the stop-gap debt ceiling proposal or a return to the market among traders who'd pared positions ahead of the extended weekend, bonds have had an easier time finding buyers so far in the new week.  Perhaps even more obvious is the outperformance seen in EU bond markets with EU yields implying an even bigger rally than we're currently seeing.

Gains aside, the broader context is a bit more sobering.  We could be rallying twice as much and still not even be close to re-entering the previous trading range in 10yr yields.