There were no significant economic reports today and no obvious market-moving news headlines.  Nevertheless, bonds went on yet another snowball rally run to new long-term lows.  

Today's version was even more interesting than some of last week's examples.  Case in point, 2yr yields ended the day down nearly 7bps while 30yr bonds barely gained any ground.  What's up with that?!

Part of the reason is the extent to which the opposite phenomenon was in fashion heading into the end of last week.  Traders are booking profits on those curve flattener trades (betting on longer term yields falling to be closer to short-term yields).  Profits on those trades could either be booked by selling longer-term bonds or buying short-term bonds.  

None of this is really important though!  The fact is that rates continued to drop on a day with no apparent motivation to levels that are even deeper into long-term lows.  When we go digging for motivation, the only viable conclusion is that of a short-squeeze causing snowball buying, with the latter being exacerbated by algorithmic trading.