Another Sideways Set-Up

Bonds may be up a bit and down a bit between now and yesterday's close, but none of it is super consequential in the bigger picture.  Of course there are a few ways to view the bigger picture depending on how big you want to go.  Looking back 4 or 5 months, bond yields have been in a very simple, linear, and unfortunate uptrend. 

In the slightly smaller picture, yields have been exceptionally sideways, trading mostly between 4.28 and 4.30 with some overrun in either direction.  It's not unfair to conclude that trading levels are hunkering down in this low volatility pattern in preparation for what could be a higher volatility reaction to this week's CPI and next week's Fed announcement. 

Today's only relevant calendar event is the 1pm ET auction of 10yr Treasuries.  Auctions haven't been reliable market movers recently, but they always CAN be if the results are far enough from expectations and average stats.