It's not really an exaggeration to say "no one saw it coming" with respect to this morning's jobs report.  NFP hit 353k versus a forecast of 180k.  100k+ beats happen, but not enough for economists to set their forecasts at those levels.  Add to that the fact that revisions jacked up the past few months by a significant amount and it's no surprise to see bonds swooning.

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While this is indeed a very large one-day sell-off, it's also been a very large rally week for bonds.  It doesn't feel like it today, but yields are still lower week-over-week.  The true test will be the next few weeks and especially the next CPI release (week after next).

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