Today had all the trappings of a return to some semblance of volume and volatility for what has otherwise been sleepy summertime bond trading patterns--at least if you were only looking at a 1 or 2 day chart.  Zoom out to any wider frame of reference and today quickly gets lost in the ultra narrow range this week, which is simply a slightly tamer version of last week's ultra narrow, ultra sideways range.

All of this "sideways narrowness" is building toward something.  The market won't ever tell us what that something is with 100% certainty, but in the short term, we know what our best chances are when it comes to actual volume and volatility returning!  

The first of the usual suspects lands tomorrow in the form of the Fed Announcement and press conference.  The morning's economic data could also leave a mark.  Even so, it would be tough for things to get too out of hand until and unless Friday's jobs report happens to strike whatever chord the Fed begins to strike tomorrow.  And if NFP happens to strike the opposite chord, well... we could be right back in this sideways stance next week too!  This menu of ifs and thens is largely responsible for today's absence of movement.

Core PCE inflation was weaker than expected, but stronger than last month.  Bonds rallied and sold-off on that news.  Consumer Confidence crushed its forecast, which prompted more unified selling pressure at 10am.  But again, all of the above played out in a micro-range that left bonds effectively unchanged on the day.