Bond Watch: Feeling Better (BONDX) : The bonds are recovering, gradually, as the session is putting in an up bar thus far. A trip back down to yesterday's lows brought out some dip buyers setting up a bigger rally. Inflation fears may have backed off for the time being as positions get squared into the weekend. The buck is getting sold as London signs off. The euro needs to recapture the 1.41 handle to put a wind back in it sails otherwise those looking for a dollar short squeeze may be rewarded for the perseverance. The euro is at 1.4090 & the yen is at 115.4820 while the 10-yr is +11/32nds yielding 4.650%. For more bond & economic commentary click here.