Yesterday's Recap

  • Snowball Selling
  • All Data unfriendly, higher than expected CPI leads the charge
  • lost almost a full point in 4.5's
  • S&P breaks several tech ceilings
  • 10yr backs up BIG TIME to 3.63

The AM So Far

  • Chase Earnings Kill It
  • Jobless Claims in at 522k, continuing claims drop big
  • BUT Buy the rumor sell the truth?  Because MBS and Tsy's have not reacted as you'd expect
  • Dipped initially on the release, but back at 99-12 on 4.5's
  • Even the objective data sources are noting claims are distorted by uncharacteristically low auto industry layoffs

2s vs. 5s: 147bps

2s vs. 10s: 259bps

5s vs. 10s: 112bps

Crude: 60.97