It's the same story for stocks and bonds right now.  Yesterday's impressive rally was extended overnight in both cases, and is now pulling back as the domestic session progresses.  It's really that simple.

This big move at the edge of long-term ranges naturally opens the door for a small corrective consolidation.  Some traders will be booking profits.  Others will be making new bets that rates go higher.  Overall there's a good balance among various Treasury trading positions.

If you want to make things less simple, you might consider that speeches from Eurozone officials this morning paint a slightly downbeat picture for more aggressive central bank action.  There's nothing too exciting going on with those headlines though.  The gist is that Germany and Draghi are at a bit of a stalemate.  That's nothing new but having it reiterated perhaps depresses markets a bit.

As we head toward the afternoon hours, negative reprices are an ongoing possibility with Fannie 3.5 coupons off 4-5 ticks from some lenders' rate sheet print times.  The next focal point in terms of volatility is the 1pm 30yr Bond Auction.