Bonds are going up because Fed has been buying them. When Fed makes payments, money is released into the private sector. What happens to asset prices when there is geater supply of money? They go up. Simple inflationary economics.
Right now markets are expecting US and UK to do more and more QE after BoJ recently announced Japan's own very aggressive QE program. Markets are rallying on expectations of QE. For this rally to have legs, companies will need to report real improvements this quarter.