Bank Drama and Economic Contraction To The Rescue

After a sharp sell-off to start the week, bonds are back in action this morning, enjoying the carnage and chaos in the economy every bit as much as their reputation suggests.  In other words, bonds love economic weakness and uncertainty.  They even love an apparent shift in key labor market statistics in cases where the labor market has been abundantly resilient.  This morning's JOLTS data is providing that, and it came out at the same time as morning cliff-diving in bank stocks.  All of the above has helped bonds fully erase yesterday's bumpy start to the new month.