Bonds lost ground modestly overnight.  Contrast that to the past few trading sessions that have seen gains in Europe followed by selling in the US.  Then at the start of the domestic session, economic data added to the weakness, but not before a quick, paradoxical blip into stronger territory.  This was odd indeed, considering it followed another near-200k print in Jobless Claims (arguably a nail in the coffin of any prospective bond rally).

But now as PM hours approach, bonds are back to unchanged levels.  Comments from Fed's Goolsbee have certainly helped as he basically said the Fed doesn't need to stoke unemployment in order to tame inflation--a very timely thought on a morning with strong labor market data.  Fed Funds Futures offer some clues and confirmation as to the impact of the Fed comments.