So far this week, both of the trading days have done everything in their power to be as meaningless as possible.  There have been no major attempts to break floors or ceilings in rates, no major correlation between market movement and data/events, and not much by way of data and events in the first place!

Of particular note: the intraday high 10yr yield in the past 4 trading sessions has occurred somewhere in the 2.37's.  That gives us a great preliminary ceiling to watch as we stand guard against the risk of volatility tomorrow.  It will be higher due to the holiday calendar (last day before Thanksgiving weekend) and the presence of the week's only big ticket economic and monetary events (Durable Goods in the morning and Fed Minutes in the afternoon). 

Bonds improved slightly on the day, but pulled back from stronger AM gains.  Yields ended 1bp lower at 2.358 and Fannie 3.5 MBS were 3/32nds higher at 102-21.  Stocks continued to defy gravity and the yield curve (spread between 2 and 10yr Treasury yields) pushed tighter/narrower to another post-crisis record.