This morning's jobs report was very close to perfectly in line with forecasts.  While the job count declined from last month, the report was strong overall (and again, right in line with forecasts).  The takeaway is that it does not show the same sort of weakness seen in the other data from earlier in the week.  Bonds had already stopped rallying to guard against just such an eventuality.  The stronger jobs report made the next course of action a no-brainer, unfortunately for fans of low rates.

As bad as it is for longer term bonds, short-term rates are taking the news even worse.  Fed Funds Futures have now fully erased the gains seen so far this week.