Equity Melt-Up Accelerates Post-Payrolls, Bond Yields Plunge

US equity markets are exploding higher (again) this morning with Small Caps leading the way following the better-than-expected payrolls print (and positive revisions)…

At the same time, bonds are also aggressively bid with 30Y yields cashing to six-week lows…

Source: Bloomberg

But, against this background STIRs are moving more hawkishly post-payrolls…

Source: Bloomberg

Leaving the yield curve to re-flatten…

Suggesting the market is pricing in a policy error once again.