The Eurodollar curve has spreads steepening with the pivot point of the curve moving out from June 2005 to September 2005. The market moved this pivot in when Janet Yellen suggested the Fed might start raising rates six months after the end of tapering.
In December the Federal Reserve saw enough evidence of economic strength to begin tapering its Quantitative Easing (QE3) program and markets are adjusting to this new reality. So far it has been a tough pill to swallow with emerging markets being the first to feel the pains of withdrawal.
So there you have it. An early 8-point lead for U.S. stocks turned to dust following the U.S. employment surprise as investors figured the odds were now against them in terms of chasing fresh record highs.