After yesterday's somewhat hopeful leveling-off in bond yields, today served to drive home the point that hope is futile and only bad things are going to happen forever and ever.  Well, at least that's how it felt today.  To be fair, yields are only closing a few bps higher and they've managed to hold very close to yesterday in terms of intraday highs.  In fact, today saw by far the smallest increase in intraday highs since the more serious selling began last week. 

In other words, there's still some room for hope.  Just don't get too attached.  From here on out, the presence of hope may have more to do with the incoming events.  These get more serious tomorrow with the first reading of Q1 GDP, a 5yr Treasury auction, and the biggest day of earnings reports so far this year (by a WIDE margin).

One other reason to question your inclination to be hopeful would be the incredible divergence seen in the stock/bond relationship today.  Granted, the so-called "stock lever" is frequently broken (i.e. falling stocks don't always help rates), but that is more likely to be the case when movements are relatively tame.  Today, on the other hand, stocks lost a ton of ground, and bonds didn't glean much--if any--benefit.