Thursday's Rally Sets Up For a Very Interesting Friday

Thursday's Rally Sets Up For a Very Interesting Friday Of course we had to have a big, interesting move in the bond market on the day before an economic report also famous for causing big, interesting moves. On such occasions, if Friday delivers on "interesting" it will either negate today's bullishness or add to it in a way that makes today retroactively look like an obvious near-term top in rates. There's no way to know enough about today's rally to conclude that--let alone the unknowable results of the jobs report and the ensuing reaction. All we know: today was a win. If more wins follow, we can talk more about bigger picture supportive ceilings. Econ Data / Events Continued Claims (Sep)/19 1,701K vs 1730K f'cast, 1719K prev Jobless Claims (Sep)/26 197K vs 200K f'cast, 197K prev Market Movement Recap 09:04 AM Another round of 8:20am selling erases small overnight gains. 10yr up 1.6bps at 5.303 and MBS up 3 ticks (.09).  01:05 PM Big intraday reversal (in a good way). European credit spreads could be a factor as well as short-covering ahead of jobs report and new-month trading. MBS up 3/8ths and 10yr down 7bps at 5.218