You may have the market aphorism that it's easier to ride waves than to swim against them.  The post-ECB bond market wave is still in force today with all corners of the bond market gaining ground, but especially the longer end of the yield curve.  That, in turn, provides some benefit for MBS with Fannie 3.0s up more than a quarter of a point.

The most refreshing thing about today is the lack of volatility during the domestic session.  10yr yields have held under 1.85 and above 1.80--not too shabby considering the circumstances.  Volume is much lower and markets are generally looking tired, but happy after doing a pretty great job of front-running yesterday's ECB announcement over the past few months.

The caveat about 'riding the wave' is that we're not getting any new information on the organic trend.  In other words, what would markets be doing without this big, leftover momentum pushing yields lower?  Today's move in EU credit spreads offers clues.  They've bounced back above yesterday's pre-ECB levels, suggesting remaining doubts as to QE's efficacy.  Either that, or they'd simply priced in QE to perfection. 

The takeaway is that some of the strength in German Bund yields (which most directly benefit domestic markets) could indeed be due to lingering concerns about economic growth and inflation.  That's a trading motivation that will be increasingly sorted out from short-term QE euphoria in the coming week.  But at least for now, the case for ECB QE turning into a late 2010 repeat for US markets is far from closed.