Today was a so-called "inside day" for bond markets, meaning prices and yields remained INSIDE yesterday's range of prices and yields.  Economic data fell on deaf ears and related markets didn't cause too much of a fuss.  Oil and stocks ended the day near unchanged levels and bond markets picked up a bit of the ground lost yesterday afternoon.

This wasn't necessarily destined to be the case from the outset as bond yields and stock prices were initially higher overnight.  10yr yields were holding a supportive ceiling at 1.91 when stock futures began falling, eventually helping bonds move into positive territory.   Treasuries briefly returned across the unchanged line mid-morning and then moved back into positive territory for the rest of the session.  MBS lost less in the morning--never crossing into negative territory--but also gained less in the afternoon.

Tomorrow morning brings the big jobs report.  NFP is expected in at 190k this time vs last month's huge 292k, with the unemployment rate remaining unchanged at 5.0%.