Like most others, I was impressed with the bullish advance following the employment report last Friday. That report was of course the weakest in over a year and brought concerns that the one bright spot for U.S. domestic growth had finally turned for the worse.
Quietly, Treasuries trade back to post auction lows from yesterday. Volume is not large, but prices are unable to hold gains following the weaker employment report, weak factory orders out of Germany the other day and yesterday's FOMC minutes.
Things will all be much more relevant after better U.S. equities trading today clarifies the extent of a failure that left them challenging key lower support. Much below the levels seen Friday there might be more extensive weakness back into January’s trading range along with further strength of the govvies and U.S. dollar weakness.