In yesterday's recap, I mentioned that we were likely to see a token bounce on one of the next 3 days, but that it didn't necessarily guarantee further gains.  Today brought said bounce.  

As discussed in the Day Ahead, there are solid historical examples of such bounces turning out to be one or two day affairs that give way to additional upward pressure in rates.  I don't share those facts to assert that such a thing WILL happen this time--merely that it CAN happen any time we see a nice green day punctuating a sea of red.

Today's rally was somewhat underwhelming to boot.  European bonds rallied better than US bonds and the latter was completely unwilling to chase the former's 2nd wind around 10am.  In other words, Treasury yields looked like they were reluctantly pulled lower without necessarily being interested in such things.  

Tomorrow brings the first reading of Q1 GDP, and our first official look at the impact of the tax bill.  Forecasts have consolidated in a 1.8-2.6% range--still fairly wide, and still susceptible to "upside surprises."  In other words, if the headline number is a 3 instead of a 2, it could be pretty damaging.  That said, a headline number that's much lower than the 2.0% median forecast would likely be of some benefit at the moment.  

Away from econ data, bonds will potentially be getting a jump on month-end trading.  They'll also give perhaps some small thought to implications of the North/South Korea meeting as far as geopolitical risk is concerned.