It was a pretty straightforward day for bond markets, which CONTINUE to operate in an exceptionally narrow, sideways range.  That's been the case for close to 3 months now.  As such, with yields approaching the ceiling today, a breakout would have been big news, and we haven't quite gotten to the headlines and events that constitute "big news."

All that to say that bonds didn't do anything too surprising by maintaining the range today.  Still, to see it happen in real time, it looked like our salvation depended upon the 30yr bond auction.  Heading into the auction 10yr yields were pushing the key technical ceilings near 2.42%.  After stronger auction results were released, bonds immediately found their footing, and managed to avoid returning to the higher levels.

On the other hand, bonds certainly weren't eager to stampede back toward stronger levels--a fact that likely reflects the risky events on the calendar for tomorrow.  These include the morning's Consumer Price Index and the afternoon's Fed Announcement (specifically the economic projections released at the same time--2pm).  We'll discuss these in greater detail in tomorrow's Day Ahead.