The overnight session saw the lion's share of today's movement, resulting in MBS/Treasuries opening at their best levels of the year yet again.  Tradeflow momentum helped during Asian hours as Japanese money managers continued selling domestic and foreign equities.  Economic data added to the bond-market positivity in Europe as Inflation was tame, and Retail Sales were weak in Germany.

US economic data hasn't been too interesting or had too much of an impact in either direction--coming in fairly close to consensus on all accounts.  Stocks are moving higher, but bond markets haven't been following in the same lock-step seen in recent sessions.  Considering that phenomenon in conjunction with the calendar, "month-end buying" comes to mind as a possible explanation for the incremental positivity.   That makes next week even more interesting.