NFP Friday saw bond markets make a weak attempt to break an extended sideways range.  Today's trading activity has quickly ferried yields and prices right back into that range.  The chart below shows how this has played out in terms of 10yr yields.

The weakness was already trickling in during the overnight session, but it kicked into higher gear as this week's anticipated villain showed up: corporate debt issuance.  There is a more thorough discussion of this in the Week Ahead.

Long story short, corporate issuance had been at a relative standstill over the past 2 weeks, and there was relative agreement among market watchers that the current week would likely see a resurgence.  This quickly became apparent as several big name firms announced new offerings in the space of 30 minutes this morning.  This accounts for most of the move back into the range highlighted in the chart above.  Before that, reasonably strong data in Europe overnight and stock market gains already had bonds drifting into weaker territory.

There is no major domestic economic data on the calendar today.  The only scheduled event of note is the 3yr Treasury Auction at 1pm, and these don't typically cause much movement in longer-duration Treasuries or MBS.