The economic and event calendar is fairly light this week, especially on the first few days.  The importance and pace of potential market movers increases somewhat on Wednesday with Import/Export Price data and the afternoon's 10yr Treasury auction.  But Friday hosts the only top tier economic data in the form of Retail Sales and April's Consumer Price Index.

Between now and then, bond markets will have to come up with a fairly convincing reason to exit the uptrend that's been in effect since mid-April.  Most technicals suggest that negative momentum remains intact, but it wouldn't take much of a rally to call the negativity into question.  The problem is that there's a fair amount of "room to run" toward higher yields if the negativity does remain intact, both in terms of the outright trend lines (yellow lines in the chart below) and other measures of the probable scope of any short term sell-off (like the upper purple Bollinger Band, which happens to coincide with the Yellow line this week, near 2.45%).

Any additional strength in stocks will make things that much harder for bonds this week.  While the two aren't perfectly correlated, a significant move in one tends to be noticed by the other.  At the moment, stocks stand a chance to confirm a break above the recent sideways channel that followed the French election breakout 2 weeks ago.  Stocks just began edging above this channel on Friday.  Today offers a chance to confirm that upward momentum (if they close above the white dotted line again)--something that would likely put additional pressure on bonds.