Frustratingly Persistent Selling Pressure in Bonds

Bonds got off to a rocky start well before the domestic session began.  European bonds kicked off the selling spree, but most of the weakness arrived after the 8:30am release of the NY Fed Manufacturing data which swing wildly back into positive territory after being down big last month (+10.3 vs -18.0 f'cast, -24.6 prev). That said, the weakness was most noticeable while EU markets remained open.  After they closed, US bonds flat-lined with MBS down roughly half a point and 10yr yields pushing 3.60%. Strong bank earnings are also said to have contributed to the weakness.