Bonds Talked Into Modest Gains by Europe US bond traders didn't necessarily come into work with the intention of adding to yesterday's rally.  It was only after European bonds exploded into stronger territory that US yields grudgingly followed--very grudgingly.  In fact, as soon as European trading wrapped up for the day, US yields rose back to meet yesterday's 3pm closing levels.  Several big corporate bonds may have added some pressure.  We can also consider that US bonds already had a fairly big rally after the Fed yesterday.  But the simplest view would be that it didn't make sense to get too carried away with the jobs report on deck in the morning. Econ Data / EventsJobless Claims183 vs 200 f'cast,186k prev Unit Labor Costs, Q41.1 vs 1.5 f'cast, 2.0 prev Market Movement Recap09:05 AM Flat to slightly stronger overnight.  Additional gains after ECB announcement.  10yr down 8bps at 3.34%.  MBS up 3/8ths of a point 12:51 PM Largely sideways during the domestic session, but off the best levels from earlier this morning.  10yr down 3.8bps at 3.376.  MBS up 6 ticks (.19) in 4.5 coupons and 3 ticks (0.09) in 5.0 coupons. 01:51 PM Weakest levels of the day in Treasuries with 10yr up to 3.404 (still down 1.3bps on the day).  MBS are also still slightly stronger, but more than a quarter point off the highs. 03:18 PM Not much additional weakness over the past hour.  Still slightly stronger on the day but near the weakest levels of the day.