10-year Treasury yields down 2.5 bps today

USGG10YR

Bond traders are facing a bit of a tough time to start the week, as the more dour risk sentiment is seeing bids flow through and offsetting some of the moves on Friday.

This week was supposed to be about the Fed but China is stealing the spotlight as market participants return from the weekend.

Be it risk sentiment or the fact that there is also key technical resistance capping yields at the moment, bond sellers will have to wait further after Friday's failed move.

The market is anticipating some form of acknowledgment by the Fed this week on the start of taper discussions with the hawkish camp perhaps looking for further clues on a possible taper announcement in November/December.

But when all is said and done, does it even matter when exactly the Fed tapers?

For now, the market is still attaching a great deal of significance to it but in the bigger picture of trading this week, perhaps what is happening in China is more noteworthy.