Volatility has increased in the bond market with the market improving yesterday morning and then losing momentum during the day yesterday and then deteriorating again today.  With little data on the economic calendar the past several days, the volatility has been driven by investor demand for the US Treasury auctions.  Yesterday's $40 billion of 3 year notes was well bid.  The bid/cover ratio was 2.98 ($2.98 of bids for each $1 being auctioned).    Today's $21 billion of 10 year notes was not as well bid.  The bid/cover ratio was 2.62 and the yield increased to 3.448%.  Tomorrow's weekly jobless claims report and the $13 billion 30 Year Treasury Bond auction could create more volatility tomorrow.