Super High Potential Energy Surrounding Tuesday's Data

Super High Potential Energy Surrounding Tuesday's Data

Monday proved to be the quintessential placeholder trading day that it was probably always destined to be.  Bonds lost a modest amount of ground early, regained most of it, and then lost it again by the close.  All told, it was only a few bps in terms of 10yr yields and thus not worth writing home about.  Trading levels have obviously leveled off in a sideways holding pattern ahead of Tuesday's CPI.  On that note, it would be difficult to overstate the potential energy for bonds waiting on the other side of 8:30am ET.  Granted, there's always a chance that the needle is threaded and little movement ensues, but there's also a chance that it's the most dramatic day for bonds in months, for better or worse.