The world's biggest bond market may have finally broken out ofits tight 2017 trading range, but it's not exactly drawing a clearroadmap for traders of the moves ahead.

Rather than gaining more insight into the plight of the globalreflation bet, traders were left reacting to geopolitical risksfrom North Korea to Russia (not to mention a huge bomb dropped inAfghanistan just before holiday-shortened trading ended). They alsoheard President Donald Trump jawboning the dollar lower anddeclaring he likes low interest rates now that he's in the OvalOffice. Those factors seem unlikely to disappear in the weeksahead.

That leaves the benchmark 10-year U.S. yield at 2.24%, near thelowest this year, and the dollar about the weakest versus the yensince November, heading into a relatively quiet week for economicdata. Rather than overreact to something like housing starts,traders and strategists are keying in on technical market levels togauge the sustainability of the latest move.