Weaker Start Offers Clear Reinforcement of The Range

While it would be nice to have our 3.4-3.6 range back, the past few weeks have seen the adoption of a new 3.72-3.84 range.  While ranges this narrow often prove to be fleeting, traders opted to reinforce the lower boundary yesterday with a strong rejection of the 3.72 floor.  For those who'd rather not bring technicals into the analysis, higher UK inflation set a weaker overnight tone that spilled over to US trading. 

Sprinkle in some anxiety ahead of Powell's testimony (and early analysis of his prepared remarks) and yields were already halfway back to the ceiling.  Bonds have been able to push back in a friendlier direction as Powell answers the extremely limited number of questions that are anything more than political grandstanding.