Bonds were weaker in the overnight session, but only slightly.  The onset of domestic trading saw a stronger contingent of traders lined up to buy bonds at the 8:20am CME open.  The 8:15am ADP data was weaker.  It may have helped a bit, but bonds were keen to wait another 5 minutes before the first noticeable rally of the morning.

We drifted sideways from there until weakness in European and US equities spilled over into a risk-off trade that benefited bonds.  NY Fed's Williams was out with several moderately helpful comments shortly thereafter (discussed in today's Huddle video).

From a technical standpoint, today's modest gains keep yields in the same old range, albeit right in line with the ceiling for the 3rd straight day.  This puts us in a position to rally back into the range in the event that NFP is bond-friendly tomorrow.  Of course if NFP (and/or the average hourly wage data) is much stronger than expected tomorrow, it also leaves us vulnerable to a range breakout.  Either way, the technical landscape seemingly increases the risk of volatility for tomorrow.