Things are looking much better in the European economy and that's giving the ECB the chance to sound much more hawkish. That's going to keep bonds heading lower.
Five percent is a very important psychological level. People could start looking to build up longs at these levels.
We've got a lot of supply so that's putting Treasuries onto a bearish footing. People aren't expecting a good result from the auction and in the short term yields can push higher.
It's an equity story today in the bond markets. The equities decline is probably due to worsening economic fundamentals, so that will also pull yields down.
Recent numbers have been very favorable for euro-zone growth. We may see a small grind higher in yields.
