Domestic bond marched to their own beat today, holding much steadier than European bonds overnight and standing their ground against a stock rally this afternoon.  Yesterday's lowest yields provided a resistance target (aka: floor) and while today's yields never broke through, the did manage to coast asymptotically closer as the day progressed.  MBS outperformed a bit, by comparison.  Confusing words, simple picture:

The morning's economic data caused brief, contained volatility.  CPI was right on target, so it makes more sense to consider the big beat in Housing Starts as the market mover.  But the Housing Data wasn't as bullish as the headlines suggested, largely because it was purely driven by multi-family.  It's not that multi-family construction is bad, just that it doesn't suggest the same sort of economic progress that single-family would.  After that though... nothing.