Global markets' courtship phase with China's currency devaluation continued benefiting Treasuries overnight.  While there was a slow, steady move back toward higher yields during the European session, it ended abruptly at 10am after a lackluster JOLTS report (Job Openings and Labor Market Turnover Survey).  JOLTS isn't normally a market mover, and it may not have been much of a market mover today, but it was the only salient data out at 10am when bonds began to rally.  So it would be hard for someone to argue otherwise.

For all the pleasantness of bouncing back to the day's stronger levels, the 1pm 10yr Auction has just recently sent us back toward weaker levels.  In both cases, things have been well-contained by the day's previous highs and lows, but it creates some concern over negative reprices for the lenders that priced (or repriced) near the day's better MBS levels.