If last week could be reduced to a single theme, it would be that of omicron concerns driving a bond rally and stock sell-off.  This week's theme is only slightly more complex.  The primary ingredient is simply the opposite of last week: waning omicron concerns driving stocks higher and hurting bonds.  Supporting actors include this week's Treasury auction cycle and a technical bounce as bonds refused to enter the "delta zone" seen in Q3.

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This afternoon's 10yr Treasury auction is one of the few potential flashpoints for volatility as far as scheduled events are concerned.