Yesterday was boring and uneventful.  Bonds seemed to be trying everything in their power to remain range-bound and avoid breaking out of the consolidation pattern we'd been tracking.  

By contrast, today's bond market is unrecognizable--seemingly determined to break forcefully outside the consolidation pattern.  There were significant gains overnight.  As noted in this morning's first update on MBS Live, these arrived hand-in-hand with heavy selling in stocks.  

The goal/challenge from here will be to convincingly break below the pivot point that we've been eyeing ever since we broke above coming in the other direction.  3.13% in 10yr yields is the line in the sand standing between us and more livable yields.  

Note: the chart above was snapped a few minutes before the last leg of the rally, and we're now right on top of it.  Our fate for the rest of the day is likely predicated on additional weakness in stocks.  Otherwise, extending a 10yr rally much past the current 7+ bps seems like it might be too much to ask.  Even if we ultimately see resistance today, we'd still take an inventory of any ensuing weakness.  If the resistance bounce doesn't hurt too bad, we could still be setting up for a break later this week.