Whether it was a magical combination of Treasury auction timing and new month trading or a legitimate shift in response to Monday's ISM Manufacturing data, the bond market seemed to be in a hurry to get in position for a shift in the pace of economic growth.  This sentiment was so entrenched that a very strong ISM Non-Manufacturing reading on Wednesday didn't even come close to derailing it.  But bond bulls are forced to acquiesce--at least to some extent--after this morning's exceptionally large beat in nonfarm payrolls (272k vs 185k f'cast). 

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Bonds haven't enjoyed it so far.

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If there's still a case to be made for optimism, it's that yields are "only" up into the low 4.4's--still not even halfway back to last week's highs.

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