“Crushed” is likely too harsh a term for what we’re seeing this morning, but were it not for Monday morning’s paradigm stretching reversal, this morning’s reversal would indeed look fairly serious. Specifically, bond began the day with yields a few bps lower before zooming almost instantly to much weaker levels after the jobless claims data. This is an uncommonly brisk reaction to weekly claims data, but the market was more tuned in this time around due to the role of last week’s jobs report in the recent bond market momentum. Simply put, nonfarm payrolls caused labor market concern and today’s more timely jobless claims data helps alleviate some of that concern.
