The European Central Bank (ECB) was widely expected to do "something" to tighten up its PEPP (Pandemic Emergency Purchase Program) in today's policy announcement, but they've executed it such a way as to trick bonds into viewing it as good news.  EU bonds are having one of their best mornings in weeks--something we might expect to spill over to the US bond market, but that correlation has been imperfect so far as Treasuries still have some anxiety over the looming 30yr bonds auction and ongoing glut of corporate debt issuance.

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In the bigger picture, the consolidation pattern continues with overnight strength resulting in a nearly perfect bounce at the bottom of the range.

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