On a negative note, bond markets began the day in slightly weaker territory and lost a bit more ground out of the gate. This wasn't so much a factor of the morning's economic data, which was boring and inconsequential as much as a one-two punch from stock market positivity and spillover from weak European bond markets.
Even that much of an assessment is more than today needs considering the positive counterpoint, in that we crossed the 5pm mark with Fannie 4.0s off a meager 1/32nd. 10yr yields were slightly worse off but put in their highest levels of the day just before noon and then went no higher. Over the past 3 days, it looks as if bond markets were pushed into the weakest territory they were willing to explore by way of correcting from January's impressive rally ahead of tomorrow's NFP.
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