2.90% or something close to it continues to look like the center of a range of yields that might like to... think about... maybe... potentially... trying... to act as a ceiling for rates.  After bouncing at 2.92% yesterday, yields continued lower today.  That made today the 12th day since rates first hit 2.90% without moving too much higher.  If you're into hope and optimism, this looks like the beginning of a potential bounce.  If you're playing it safe or simply not too hopeful, it's just a more convincing consolidation before rates continue a longer-term move higher.

Today's economic data was a non-event.  Granted, two of the reports were in line with the bond market improvements, but notably, bonds actually weakened somewhat after each of those reports (Chicago PMI and Pending Home Sales).  That wasn't a reaction to the data as much as it was simply evidence that the data didn't matter.

Traders were instead focused on the month-end trading environment, where some accounts are required to hold a certain mix of trading positions for reporting purposes or simply for month-end balance sheet reasons.  That makes the next 2 days critical in determining whether or not this potential ceiling in rates gets a few more ceiling tiles installed, or whether it's boarded up to become a floor under the next move higher.