The rally in U.S. Treasury bonds surprised many, taking 10-year yields to their lowest levels in 11 months. The bond market’s rally is the result of a confluence of factors – falling yields in Europe, extra demand from pension funds, concerns among investors about long-term economic demand and technical factors, including short-covering from those who thought bond yields were headed higher. Since it’s far from certain how the jobs data will come in or how forcefully the ECB will act, the bond market is likely to remain on edge.