Good Morning on this Wednesday and best day of the week,

In the category of ‘making no sense’… the ADP jobs report was hammered and missed expectations by a huge margin (like over half- 330K vs estimates of 695K). This caused a strong opening and all was good in the bond world. This did not last long and soon bonds sold off and are now down, not horribly down from yesterday’s close, but down quite a bit from the open. Volatility is to be expected as we get closer to Friday’s jobs report but hopefully things settle down a bit today. Fingers crossed we get an afternoon bounce as traders think Friday’s report could be as weak as today’s ADP numbers. Weak job numbers on top of a whole host of negative economic indicators, which we keep seeing, will likely add more fuel to the rally in bonds (lower rates). It is just never a straight line up or down.

Here is an interesting statistic. Americans collectively owe over $10 trillion for their homes 

And for anyone who is a history (or a Broadway) buff, On this day in 1790, Congress enacted Alexander Hamilton’s plan to fund the public debt, ending years of turmoil and haggling over the junk bonds issued by the federal and state governments during the Revolution. The shift made government spending possible, and gave birth to the American securities markets.

Please remain safe and healthy, make today great!