As expected, this morning's ADP data marked the unofficial inception of 2014, bringing by-far the biggest dose of volume and movement this year. Today's volume has already eclipsed yesterday's, even before the upcoming 10yr Treasury Auction and FOMC Minutes. In other words, today's level of activity has been in a completely different league so far.
Unfortunately, the "big move" has amounted to weakness for bond markets. 10yr yields are bouncing along the ceiling around 3.0%, more than 5bps higher than yesterday. Fannie 4.0s are down 9 ticks at 103-07. All the losses were seen in the first 6 minutes following ADP and ranges have been fairly narrow since then.
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