Much Stronger Start With Bonds Following Gains in Europe

Bonds began the overnight session in modestly stronger territory but the gains started adding up in earnest after European markets opened for the day.  A slew of respectable inflation readings and another survey on inflation trajectory helped juice European bonds and US Treasuries came along for the ride.  Then in early domestic trading, there was some speculation about flight-to-safety trading  with stock prices and bond yields moving lower together.  The jury is still out on geopolitical events driving bonds over the past 2 days (i.e. there are other ways to reconcile the move that could be more relevant).  Either way, the net effect was a solid improvement overnight. 

Additional gains have followed the Consumer Sentiment data with the only caveat being that we've barely begun to unwind this week's losses.