Bonds are in an ongoing consolidation after 10yr yields hit 5% last week.  The consolidation cuts both ways and today is a good cut.  Yields hit 4.99% early but found support from European bonds after the ECB announcement.  Then at 8:30am, a mixed bag of economic data gave way to surprising rally.  To be fair, it's surprising relative to the headline components of the data, but perhaps less surprising when we consider internal components as well as the consolidation thesis.  Specifically, the consolidation isn't likely to see a strong vote in either direction until next week.  As for the internals of the data, GDP final sales came in at 3.5 vs a 4.5 forecast, possibly foreshadowing weaker data in the months ahead.

In the following chart, notice EU bonds beginning to lead the bounce.  It's not clear whether that would have even been necessary for 10s to see more support at the 5.0% ceiling.