This morning's Day Ahead laid out a case for bonds taking a "lead-off" ahead of tomorrow's NFP data.  It's not necessarily about NFP (the nonfarm payrolls component of the jobs report) as much as the recently narrow range in longer-term bond yields.  

For instance, 10yr yields have traded between 2.28 and 2.35 for nearly 2 weeks now, and they were inching above that 2.35 barrier right after this morning's economic data.

Interestingly enough, it was the "unit labor cost" component of the Productivity and Costs report that did the damage early.  It caused additional selling that piggy-backed on overnight weakness courtesy of EU bond markets.  The EU effect was again apparent in the noon hour when Treasuries suddenly found their footing immediately following the EU bond market closing bell.

Fannie 3.5 MBS ended the day down an eighth of a point and 10yr yields just barely held above 2.35%--a somewhat equivocal way to challenge the recent trend, but a challenge nonetheless.