In the day just past, both stocks and bonds too part in a big risk-off trading pattern (stock prices and bond yields moving lower). Inspiration came from general trade war fallout, concerns over British political upheaval, and especially weak Markit PMI readings. We can also assume the skids were greased by short-covering.
In the day ahead, bonds will attempt to hold on to their recent gains despite an illiquid pre-holiday trading environment. Durable Goods is the only economic data on tap and it hasn’t been a huge market mover lately. If stocks manage to stage a major comeback, that could be a source of inspiration for bonds. The two haven’t been perfectly joined at the hip, but the bigger the move in stocks, the more likely it is that we see a reaction in bonds.