European market levels and the global market considerations inspired by news out of Europe served as the driving forces behind much of today's bond market gains in the US.  This began gradually over the past several days as several analysts/economists have suggested that the ECB is hinting at expanding its easing programs. 

This wasn't enough to save equities markets though.  Stocks are keying in on bigger picture drama, even when it's fueled by temporary, and unexpected headlines, such as the the Volkswagen scandal.  This did particular damage to European equities at a time when the technical landscape in many major stock exchanges can ill afford it (starting to look like stocks are breaking below support levels).  As if it needed to be said, IMF Director Lagarde confirmed as much in comments this afternoon, saying that Chinese growth and Fed normalization both pose downside risks to global growth. 

US equities futures followed European equities lower overnight, and European bond yields led the charge for Treasuries and MBS.  Helping to grease the skids was the fact that corporate issuance was slightly lighter today vs yesterday.  Bonds had no further reasons to rally after Europe closed, but managed to drift sideways without any major reversal into the afternoon.