Today is another POMO day ... though a light POMO, as the Fed buys back $660M of $10.246B in TIPS offered by dealers. Treasurys are mixed: the 30-year yield -0.01 to 3.91%; 10-year flat at 2.48%; 5-year -0.02 to 1.09%; 2-year -0.01 to 0.35%.
In addition, a positive spin of China's interest rate hike in China last night really removed a major obstacle for being bullish.