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). 

Bonds haven’t enjoyed it so far.

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.