It’s good old-fashioned sell the news action today, which is not completely surprising. There is nothing to be worried about fundamentally, but the bond market continues to be problematic.

The Ten-Year Bond Yield (TNX) surged this morning, gaining 6.7 basis points and approaching the 4.7% level.

Yields remain steady following the latest auction.  The Treasury plans to sell $38 billion 10-year notes at a high yield of 4.680%. This is the highest yield since 2007.

I am surprised at the reaction to economic data this morning. Considering that there has been a string of negative data surprises.

The JOLTS report is wrecked. It increased by 259,000 to 8.098 million in November from an upwardly revised 7.89 million in October and above estimates of 7.7 million.

Notable Points:

• Business services gained 273,000
• Finance and insurance gained 105,000
• Information fell by 89,000
• The South region grew the most, up 194,000
• The Midwest region was the only region to see declines, losing 16,000

The US trade deficit expanded to $78.2B in November from $73.6B in October. This is due to import growth outpacing export growth by 0.7 percentage points.