10 year yields, 10 mins
The pop in rates after the US trade balance and jobless claims data has completely faded. It's the first sign of real strength in bonds in awhile and has been coupled with a reversal back to pre-data levels in the US dollar.
The strength in bonds may be a sign of resilience or real money wading back into the bond market but it could also be pre-non-farm payrolls positioning or angst. I'm always reluctant to read too much into price action before the jobs report and today is no different. Bond shorts have piled in and they may be looking to lighten up against the always-volatile NFP report.