Last week was obviously all about the election.  By Friday, our recap said "forget the election" and focused on speculation that the Fed would soon be pressured to shift gears in its MBS buying plan (the pace of MBS outperformance is unsustainable).  But now we can forget about that too--at least for the time being.  Pfizer's vaccine trial update dominates the headlines (much more effective than expected).  Markets reacted in a very clear way with both stocks and bond yields surging higher at the fastest pace in months.

In terms of the bigger picture trend in bonds, this move threatens to prolong the pain.  If yields can hold below .945, however, we'd still have a shot at reinforcing a ceiling.  That's by no means something to plan on (not with yields only 1bp lower than that presently), but it would be "nice" if it happens.

Looking ahead, there's not much on tap this week other than Treasury auctions and the inflation reports (CPI/PPI), but the latter aren't yet on trader's radar as a major source of concern.  Markets are closed Wednesday for Veterans Day.