The bid-to-cover improved a lot, reflecting a reasonable appetite for the two-year notes.

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.

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

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

The data are a disaster for the recovery story. It suggests that once the stimulus to consumption fades there won't be the hiring there to replace it.