Bonds were weaker in the overnight session as Chinese equities markets continued to bounce toward higher levels.  This follows a head-fake toward lower levels last week that helped rates move back toward the lowest levels in more than 3.5 years.  Follow-through from that move was responsible for Monday morning's low rates.  But in general, this week has been about the market moving to price OUT the ill effects of the coronavirus panic.  

For whatever reason, Treasuries have done an admirable job resisting that move, but their defiance has a boundary.  In other words, if Chinese equities markets and US stocks continue higher (especially if those gains are driven by coronavirus headlines), US bond yields are likely to follow more faithfully. 

One explanation for bond resilience may have been hiding in plain sight today as Powell delivered congressional testimony.  Markets feel like they're well aware of the Fed's stance, which includes things like the near impossibility of rate hikes without a thunderous surge of inflation, and the likelihood of additional quantitative easing in the next downturn.  The Fed even acknowledged (via a separate speech and only indirectly in Powell's comments) that coronavirus could ultimately result in the need for easier monetary policy.  If we consider that Fed policy is the rising tide for all boats, it would go a long way in reconciling bonds' ability to do better than we'd expect them to do on a day where stocks were pushing all-time highs.