There are only so many ways to say the same thing, but I'll at least update the chart to show that bonds remain inside the same boundaries we've been watching.  2.36% (or 2.35%, depending on which way you want to round) has been the lower boundary for the week and 2.40% has been the ceiling--not to mention a well-traveled pivot point.  The 2.35+ level also coincides with the middle Bollinger Band (middle yellow line in today's chart).  

2017-11-2 open

A healthy break below would suggest additional positive momentum, and the chance for the longer-term technicals to resume their previously positive trend.  Recently low volume suggests markets are waiting for a breakout, both in terms of motivation, and because it could act as a technical cue for additional momentum.  

Motivation could come in the form of Trump's nomination of Jerome Powell for Fed Chair today, although it seems that markets have largely priced-in that eventuality.  Less clear is whether Trump will also try to put John Taylor on the Fed Board.  That would be bearish for bonds, most likely.

Another potential flashpoint is the anticipated release of the tax plan from Congress.  It was originally supposed to come out yesterday, but was punted to today with a promise that it would not be punted again.  Recent comments suggest it might not align too well with the President's tax principles.  That could lead markets to doubt the efficacy of whatever legislation is ultimately able to be passed, which would generally be good for bond markets.

Beyond all this, there's still NFP tomorrow.  While it's not the market mover it used to be, it shouldn't be discounted--especially after last month's relatively stellar performance in the face of what was supposed to be hurricane-inspired weakness.  


MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
MBS
FNMA 3.5
102-27 : +0-02
Treasuries
10 YR
2.3559 : -0.0201
Pricing as of 11/2/17 9:11AMEST

Tomorrow's Economic Calendar
Time Event Period Forecast Prior
Thursday, Nov 02
8:30 Productivity Preliminary (%) Q3 2.4 1.5
8:30 Labor Costs Preliminary (%) Q3 0.5 0.2
8:30 Jobless Claims (k) w/e 235 233
9:45 ISM-New York index * Oct 748.6