Today was a rather odd session across asset classes, but with it being another low volume day, there is little conclusions one can draw. Considering markets were up considerably on Thursday, a pause was likely in order today.
But what I do find a bit odd is with the weak NPF data today, the hope of QE3 was loud across the media, yet markets were rather muted. What was not muted, but was odd as well is the price action in Treasury. Nearly an entire day’s volume was done in one 15 minute bar when the jobs data was announced. A bearish day in Treasury turned into a mildly bullish session. Granted yield leaked higher all session after this monster reversal, but volume leaked as well. So the selloff was not as convincing as the intraday reversal.