Some of the headline (jobs) numbers maybe look slightly stronger than expected, but when you scratch below the surface, you find there is still plenty of weakness out there, ... Obviously the manufacturing sector is looking as weak as ever.
Once again soft data appears to be generating more reaction in the bond market than strong data -- consistent with the bullish undertone.
It is not a big surprise, some of it is kind of a backlash to this saw-tooth pattern that we have seen in durable goods in the past -- July was weak and August was very strong and now September is relatively weak.