Bonds showed both their hands early today. The first was seen in the overnight session when decent overseas buying demand pushed yields below the incredibly solid 2.80% floor.  Sellers stepped in quickly and pushed yields back into weaker territory for the start of the domestic session.

Bonds' second hand came out right after the Durable Goods data.  The report was plenty strong enough to justify additional bond market weakness (+3.1 vs +1.5 forecast with a 1% beat in the important "cap-ex" numbers).  But after only a few minutes of fairly halfhearted weakness, bonds bounced at the same ceiling seen yesterday afternoon.  

With a strong floor underfoot and well-represented ceiling overhead, 10yr yields trudged sideways for the rest of the session, apparently intent on making it to the weekend without fanfare.  Near the end of the day, stocks embarked on a selling-spree that was aggressive enough to drum up some safe-haven demand in bonds.  But for all the weakness in stocks, it still wasn't enough to get 10yr yields anywhere close to trying to break the 2.80% floor again.  

This could speak to frustratingly sideways momentum, or bonds could be biding their time ahead of a holiday-shortened week with front-loaded Treasury auction supply (sometimes we see apprehensive weakness on Friday afternoons when the next week brings Treasury auctions).  In that case, we could be waiting all the way until after spring break to see bonds' truer colors.  Here's hoping they're green!