10-Yr: -1-05/32..3.015%.. USD/JPY: 99.3900.. EUR/USD: 1.2548Offered: Bonds were offered as the market continues to confront supply as well as getting knocked off as stocks found a reason to rally. The market had been prepared for, and prepared to, shrug off a big negative number as “anybody’s bet” regardless of the ADP operation’s depth in the payrolls world. The bonds got no bounce, having priced in a hugely bad payrolls report, so the latest will offer little in support. The upcoming, massive, supply is weighing on prices and will continue to be a drag beyond the announcement tomorrow of record supply. The curve has been pushed steeper with the 2-10-yr yield spread running at 206.6, back at late Nov levels. The dollar has held its safety bid with the euro but had been losing ground into the ADP expectations report, but the quiet position squaring was given a bounce on the off the wall bad number. The yen had gotten hit and took out a key technical level on the dollar and went after some stale stops. The dollar index has been holding over the 89 handle, with sights set on 89.90. Gold saw a spike following the ADP report, slowing the steep technical decline it had been suffering with spot 920.66 (+4.38). Crude is seeing a pop on increased demand expectations now running 43.41 (+1.76). Data due has ISM services and the Beige Book and Fed-speak has Dallas’ Fisher (9) and Atl’s Lockhart (12) along with another big monologue from Geithner before the senate (
