Rates are now testing the recent highs of 3.174 and could be setting up for a drop. Rates have rallied from the 2.53 level on March 18, when the Fed announced the $300 billion long-term treasury buyback intention.
The stock market has turned around and is now up close to 1% in premarket trading. Dow futures were down close to 1% overnight on the B of A report. The talking tv heads are smiling with optimism over Friday's unemployment report. Expectations are now set for better than expected results. Most of the stress test news has been efficiently leaked without too much impact on the markets. Momentum continues in favor of continuing rises in rates but the sentiment that not so bad is good may come back to bite.