Not a bad concession built into the long bond before the auction. That said, 30s are somewhat oversold at the moment, currently testing yield levels not seen since late July. Year end is generally a seasonally supportive time for AAA assets, whether or not the market perceives current market pricing as "cheap"...we'll have to wait to find out.
From a big picture perspective, nothing has really changed regarding the uncertain economic outlook. This implies the market will continue to range trade...meaning reactions to data and events are more of a reflection of current position and short term tactics rather than overall BIG PICTURE bias. Sometimes the news cooperates with these short term strategies, sometimes it doesn't. Given the market's recent willingness to let the yield curve continue to steepen, which is a function of the TSY supply set up, we are anticipating a corrective flattening trade to take place anytime now. So we sit, hands in pocket, whistling a random tune while we wait for yield curve bargain buying. ...