Interesting day today... It began with a decent overnight rally, mostly led by European bond markets.  The first big speed-bump came at 8:30am with the Producer Price Index coming in much hotter than expected.  Normally, PPI isn't much of a market mover except in the case of BIG beats/misses.  This one fit the bill.

Bonds sold-off initially.  That much was to be expected, but there would they end the day?  The possibilities were endless considering yields were already fairly close to long-term highs.

Instead, the 9:30am NYSE open brought a healthy dose of bond buying and a moderate amount of stock selling.  European trading continued to play a role until noon when bonds went completely silent ahead of the 3-day Veterans Day Weekend, but not before 10yr yields fell more than 5bps and Fannie 4.0 MBS gained nearly a quarter point.