Focus Turning Toward Next Round of Data

In the current regime of bond market movement, traders have been running from one side of the field to the other in an attempt to get in on the action surrounding inflation data and labor market data.  There hasn't been much in between apart from Fed communications that tend to reinforce or refine an interpretation of the data.  This week's Fed reinforced the most recent ceiling in yields/rates and we're not terribly likely to challenge the recent floor without another round of big-ticket data.  For that, we're waiting at least until next Friday (PCE), and considering bonds are closed next Friday, the focus is probably better-placed on the following week's NFP.

The day is off to a decent start with yields down more than 5bps, but again, consider that in the context of the chart above.  3 out of the past 3 days have seen the same trading range and the same pace of "lower lows."  

There are no significant scheduled events on tap.