For the past 5+ months, any discussion of "the gap" among bond traders could have only referred to the 2.15-2.17 gap created on Veterans Day weekend in 2016 (Nov 11-13).  Yields closed at 2.15 before the weekend and opened at 2.17 when trading resumed the following week.  

Gaps instantly become significant targets for traders.  The first time trading levels re-visit a gap, the result is more often a bounce.  That's how it happened with the 2.15-17 gap this time around.  Yields made it back early last week, but definitely bounced.  If we return, we'll have a better chance of breaking through.

For now though, we have another gap to contend with.  This one was created by the French election weekend, and it took 10yr yields from closing levels of roughly 2.25 to opening levels of just under 2.27.  Yesterday afternoon's trading was arguably the return to the gap as yields bounced along a narrow range from 2.266-2.278 (right on the upper edge of the gap).  

Breaking through this new gap is definitely important for bond bulls (folks who'd like rates to go lower), but it's not the first order of business.  For that, we turn to the post-election trading range (or the "2017 range) from 2.3-2.6.  Today begins with moderate weakness and yields right on the edge of that range, yet again.  Bulls would very much like to avoid reentry.  We're fighting off European influences for now, but that will only last so long.

The day's only significant economic data comes out at 10am in the form of Consumer Confidence.  That said, markets have been less interested in domestic economic data compared to European market influences, geopolitical risk, and fiscal headlines.  Beyond the realm of event-based causality, there's the simple notion of "positioning" to consider.  Bond trading has been skewed in favor of buyers for more than a month, and this week has already shown itself to be a correction to that trend.  It remains to be seen how big of a correction it will become.  Selling pressure could easily persist through tomorrow's tax plan announcement.