Bond markets were mixed overnight with European yields rising slightly and US yields falling slightly.  This could be chalked up, rather simply, to the fact that Europe took their biggest hit with last Wednesday's ECB announcement.  As such, they didn't have the same sort knee-jerk sell-off as Treasuries on NFP Friday.  The extra Friday weakness left Treasuries with a bit of room to consolidate in a positive direction (read: lower yields).  German Bunds, meanwhile, were already near their post ECB lows by Friday, suggesting any consolidation should come in the form of slightly higher yields.  Long story short, both are doing what they need to do in order to consolidate. 

Unless something exciting and different happens in the next few days, this consolidation is just a smaller version of the broad consolidation that took place in the month of May.  Then, as now, the risk was that we were seeing a "bull pennant" in yields.

Adding to the sense of consolidation today, 10yr yields bottomed out at 2.366.  If you're into technical levels, that's fairly terrifying.  It was Friday's post-NFP low.  It was the closing mark on ECB Wednesday, and it was the highest intraday level reached during May's selling spree (on 5/12).

Bottom line: today is green and ominous so far.