Japanese markets were closed yesterday for a national holiday. Japanese government bonds surged toward lower yields at today's open with 10yr yields making it back to early September lows (-0.06). German Bunds and US Treasuries aren't quite there yet, but they've begun moving in that direction, led by Bunds (which are back to -0.02).
Treasuries are obviously in a different world in terms of outright levels, but the direction of the movement is the same, with 10yr yields down 3.5bps so far this morning. Fannie 3.0s are making gains at a slightly slower pace, up 6 ticks at 103-16 (compared to PRICE gains of 10 ticks in Treasuries).
All of this is much ado about nothing, however, because the movement is inconsequential in the slightly bigger picture. Both sides of the market (stocks / bonds) clearly had a bit of a fit in response to the ECB announcement 2 weeks ago (with both losing ground in PRICE).
Since then, both sides of the market have been correcting in a consolidative, triangular way (Japanese bonds are already back). It's a classic case of consolidation ahead of key events, thus there's not much to do but wait for tomorrow's central bank announcements, unless the triangles are broken before then.
