Decent Showing in Light of Stronger Data

Decent Showing in Light of Stronger Data

Bonds lost ground today, but not as much as one might expect given the 233k vs 115k result in the ADP Employment data.  Granted, ADP is a notoriously imperfect predictor of the NFP number that follows 2 days later, but that never stops markets from reacting on occasions like this.  So what stopped them today?  Some combination of month-end trading, a favorable report on new Treasury auction amounts, "bigger fish to fry," and perhaps the fact that payroll counts are being taken with a grain of salt due to weather-related disruptions in September.  Ultimately, bonds did manage to lose a bit of ground, but not until well after the morning's econ data reaction window had passed.