nvestors were bombarded by economic data after the long Labor Day weekend, ending with the widely anticipated monthly jobs report on Friday. It came in weaker than expected, though the overall unemployment rate dropped. The downward revisions of the previous months were the real story, as they suggest that the economy may not be strong enough yet for the Fed to change its policy.
The gyrations after the report were not surprising, as a whole cottage industry has developed around trying to train traders on how to trade the report. To give you an idea of how crazy the markets were, the yield on the 10-Year T-Note had a range of 2.972% to 2.864% in the first five minutes after the report. The S&P futures had a range of 1656.25 to 1663.50 in the same five minute period.
So where are yields headed?
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