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From Standard & Poor's Equity ResearchAction Economics: Treasury yields surged on the entirety of the payrolls report, which validated the "most pain" theory with an in-line 110k reading in September and a sharply upwardly revised +89k in Aug (from -4k). Considering that the negative print in August was the straw that broke the Fed's back, the data revision has made a mockery of the deeper Fed cuts and dealers are uncomfortable with the inflationary implications.
The 10-year yield vaulted 6 basis points to clear 4.60%, while the 2-year yield has gapped 11 basis points higher to 4.12%; both had been poaching higher just ahead of the results. It's beginning to look like one-and-done for the Fed, which is weighing more heavily on the front-end for the moment.