Considering the fact we have been thin or illiquid in some areas in the market it wouldn't surprise me if there had been some hedge fund selling.
I think you're seeing an enthusiastic response by the bond market because there appears to be a slight deceleration in economic activity. In order to continue to improve we'll need to see further signs of that slowdown.
The market had gotten itself into a position where the thought process was the economy was cooling off a bit and the Fed was close to being done raising interest rates. These numbers threw a wrench into the works.
You would think the bond market would sell off.
The market has been a little top heavy, so (the PCE increase) did offer a bit of an excuse to sell.