Italy's reform effort quickly ran out of steam the moment the ECB made its offer of cheap, long-term loans to banks, while Spain offered only a half-baked reform of its banks.
The strength in stocks and the bullish economic readings sucked some of the steam out of bonds, with the yield on the 10-year U.S. Treasury note sailing higher up near 3.16%, up from 2.85% less than one week ago.