• Fannie 4.5's end up 3 ticks at 100-17
• 10yr yields and at the lows of the day 3.73 (down from just over 3.76 yesterday)
• Stocks meet resistance at 1209
• More Data than normal tomorrow, including GDP, Chicago PMI, Employment Cost Index, and Consumer Sentiment

let's start with 3 charts of 10yr treasury futures. 

First of all, in a general sense, today's gains can be viewed as maintaining a pre-existing and well-established trend channel:

If we break things down a bit, (or mark things up a bit, as the case may be), we have more to consider.  After all, the mere existence of the red railroad tracks above does not guarantee that prices continue in that direction.

Here, we can see our comparative prospects at moving up or down tomorrow.   

Now let's revisit the wider view with some different mark-up to see what kind of free space awaits a move over 117-15.  There's also another dose of those horizontal support levels from the previous chart, this time including 116-22 so you can see some of the historical justification for their significance.

Moving on now to the market we care about, all the good bond vibes brought MBS along for the ride today (mostly), at least until later in the day.  Regardless, based on the trend channel in treasury yields, it's not out of the question to see yields get even lower.  But of course a move higher is possible as well.  The moral of the story is to approach tomorrow NOT from the perspective of "things have rallied so much they're bound to sell off soon. 

While a sell off may be in the cards, the recent movements, trends, and volume would put the onus for that more on the the strength or weakness of the data tomorrow.  Strong data...  We'd probably lose a bit.  Economically bearish data and this thing could extend a bit more, at least as much as NFP will allow it to extend before transfixing the markets in preparation for its release next Friday.