Dueling Narratives Leave Yields Higher Ahead of Jobs Report

Dueling Narrative Leave Yields Higher Ahead of Jobs Report In the overnight session yields followed oil prices higher, but notably, Treasuries continued to sell even after oil leveled off. Then during domestic hours, it was Treasuries' turn to level off while oil prices spiked.  From 9am to 2pm, oil rose nearly $5/bbl while Treasury yields remained completely flat. One way to justify this would be via safe-haven demand from heavy stock losses, but we continue not loving that explanation because it is even less reliably correlated than bonds vs oil. At this point, we're simply hoping that the jobs report helps restore some sense of normal market/data correlation, but at this point, anything's possible.  Econ Data / Events Challenger layoffs (Feb) 48.307K vs -- f'cast, 108.435K prev Continued Claims (Feb)/21 1,868K vs 1850K f'cast, 1833K prev Import prices mm (Jan) 0.2% vs 0.2% f'cast, 0.1% prev Jobless Claims (Feb)/28 213K vs 215K f'cast, 212K prev Market Movement Recap 08:51 AM Weaker overnight and little-changed after data. MBS down just over an eighth and 10yr up 3.6bps at 4.136 12:23 PM sideways at weaker levels. MBS down 5 ticks (.16) and 10yr up 3.6bps at 4.136 02:35 PM sideways at similar levels. MBS down 6 ticks (.19) and 10yr up 3.4bps at 4.134