While bonds are starting the domestic session in slightly stronger territory and holding sideways so far, the broader trend is still toward higher yields. That's been the case for about a month but the pace of weakness during that time has been far from threatening. If anything, we're dealing with a garden variety correction to the sharp rally seen in Nov/Dec, but one that has drawn some confidence of economic data that has been less than bond-friendly for the most part. After all, "data dependent" is the phrase of the hour and there's no reason to discount it yet. With that in mind, this week is mostly about waiting for the only semblance of relevant data on tap, which will be Thursday and Friday morning (Claims, PCE, and to a smaller extent, GDP).
In the bigger picture, we would need to see a break above 4.31% before this correction would be more concerning, and a move back above 5.0% before abandoning all hope. On the happier side of future unknowns, it would take a break of 3.33 to declare victory over the hyperinflation scare. Point being, with big victory at 3.33 and big defeat at 5.00, the current 10yr yield of 4.10 is about as far away as it can be from committing to a decision. Data can't come quick enough.