Claims took people by surprise. It makes it clear the Fed has not gone too far.

That made a lot of people think that the Fed couldn't wait until March 20.

With payrolls so close, people are looking at risk/reward and deciding to be safe.

The inflation story embedded in this report is really not that bad. People are coming back into the labor force and wage pressures aren't showing, so this is generally good for bonds.

It's hard to look at this report and be even more convinced that if housing slows down, there's nothing to replace it in terms of labor income. It leans slightly more to the bearish than the bullish side for the market.

Broaddus just reminded everyone that the Fed is going to raise rates. He is clear that the inflation data has got their attention and that the Fed is much more wary of inflation.