Last week saw the yields increasingly hold inside the "new narrow" range between 1.54 and 1.59. Frankly, I felt like it was a long shot for that range to persist all the way to Fed day, yet here we are on the eve of tomorrow's Fed announcement with a intraday high of 1.589 and a low of 1.537. Close enough!
The quintessential market-watching theme is that bonds are simply "sideways in a narrow range ahead of important data." The logical conclusion is that the important data should provide the motivation to break from the sideways range and potentially begin to establish the next trend.
With all of the above in mind, there's really not much to do until the range is broken or the "important event" passes without causing a range breakout.
In terms of movement that took place inside the narrow overall range, 'tradeflows' were the biggest motivation, despite the presence of some stronger economic data at 10am. New Home Sales (592k vs 560k forecast) and Consumer Confidence (97.3 vs 95.9 forecast) DID have a small impact on bonds, but much bigger movements were seen at 9:30 and just after 2pm. These are 2 of the 3 most active times of any given day for trading that has no direct connection to concurrent economic data or newswires.