Ahead of Friday's Jobs Report, both 5- and 10-year YIELD are poised to confront key resistance lines at 1.66% and at 3.32% respectively.
Why the strength?
Everyone is guessing at this point, either that Q2 growth will turn out to be much more robust than expected, and-or that this Friday's Report will show a big uptick in both NFP and wages (AHE), despite a disappointing ADP Report.
Otherwise, what could be spooking the bond market, unnerving investors, to exit 5- and 10-year paper? Inflation?
Are the Chinese selling U.S. paper?
Who knows, but something is spooking bond holders.