Fed and Data Temper Overnight Rally

First thing’s first: the overnight rally was fairly modest with 10yr yields dropping about 3bps to 4.41 ahead of the domestic session.  Given that these levels are/were in line with the lower boundary of the recent range, the less surprising outcome would be to see some resistance (assuming an absence of data-based inspiration). With that in mind, any selling cues in the data would be especially likely to result in some weakness, and that’s exactly what we’re seeing after the slightly stronger job openings figures. In addition, hawkish comments from Fed’s Bostic are adding some pressure to the short end of the yield curve.