Thursday's Rally Changes Nothing Ahead of Jobs Report

While bonds definitely had a logical reaction to this morning's stronger Jobless Claims data at first, a less logical rally followed shortly thereafter.  By the time we zoom out and consider the week as a whole, we see a gradual downtrend in yields leading back from Tuesday's highs with brief departures to react to economic reports.  In other words, there's a big picture, strategic circling of the wagons ahead of Friday's jobs report.  The best thing you could say about it is that it indicates bonds can be receptive to stronger or weaker data.