This morning’s announcement from the Bank of England (BOE) led to a bond rally that helped 10yr yields hit 2.656% and MBS gain more than an eighth of a point in early trading.  They’ve since moderated a bit and will spend the rest of the day getting into position for tomorrow’s jobs report.  Technicals, corporate issuance, Fed comments, geopolitical developments, fuel prices, and general big-picture strategic positioning (and/or asset allocation trading) are all vying for some measure of input.  To say that such a laundry list implies volatile, expanded intraday ranges would be an understatement.

In the bigger picture, looking through this week’s volatility, yields are still making a case for 2.70-2.71 as a pivot point after having bounced there yet again this morning.  The following chart contains hourly (as opposed to the typical “daily”) candlesticks.  It shows a good case for overhead support at 2.82 in the event 2.71 is challenged again.  Just remember…