Bond yields have been surging higher in February with last week bringing the sharpest losses so far.  The move has surprised more than a few market participants.  To be sure, the pace of selling doesn't seem to fit with the economic reality at first glance.  Moreover, the higher yields have gone, the more expectations have increased for a technical correction.  In other words, we have to find a ceiling soon, even if it's only temporary.  It looked like we found that ceiling in the middle of last week, but Friday saw yields break to new highs.  Now as the new week begins, we have more new highs (overnight) and more new hope for a ceiling bounce as bonds are rallying early.

On the data front, this week's headliners include Durable Goods, Core PCE, and the 5/7yr Treasury auctions.  With the exception of Wednesday's 5yr auction, all of that happens on the last 2 days of the week.  Incidentally, those are also the last 2 trading days of the month.  That means we could see a glut of trading momentum in one direction or the other, depending on how the rest of the week trades and how much "month-end" trading is left to be done.