Momentum indicates a slight pickup which is positive for the Bond price action as it is trading at crucial Support level.
A breakdown lower would signal higher long term rates, which however is important to watch as the FED is continuing with its QE2 program through the POMOs.
It might be a significant indication to note that the recent political tensions in the Middle East didn't inspire any notable 'flight to safety' buying and my take would be the market, spearheaded by the 'Bond Vigilantes' is continuing its short positioning in the bond market since the rise in rates is inevitable and the time till this event is ticking closer.
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