Bonds had already begun the process of rallying in response to geopolitical risk yesterday afternoon.  Notably, the headlines hit after the 3pm CME close (which marks the end of the day for a decent chunk of bond market participation).  As subsequent trading sessions began (Asia, Europe, and ultimately, the US again), we witnessed a series of "rolling reactions" to yesterday's headlines.  

In other words, each respective market hub (Asia, Europe, US) had to wait its turn before the full breadth of its trading participation could have its effect on bonds.  Those effects were consistently positive, even if the outright gains weren't staggering.  

The final straw was the 8:20am CME open in the US that took yields down to floors they'd rather not break--namely 2.21%+.  Officially, 10yr yields hit 2.212%, slightly lower than the 2.218% seen on August 3rd, but not low enough to suggest a technical breakout by any means.  The fact that we progressively lost ground for the rest of the day is further evidence of technical resistance.  

As seen several times recently, the close of European trading marked a shift for US bond markets.  This time it was from "barely weaker" to "noticeably weaker."  The 10yr Treasury auction flopped shortly thereafter--only adding to the selling momentum.  That cloud had a silver lining, however, in that yields did seem to find some support at the intermediate technical zone around 2.25%.  

Bigger picture, we're still looking for a break below 2.21% to get excited, and we're still waiting on Friday's CPI for near-term guidance.