Markets are reacting strongly to the (+/-200k) payrolls report. The considerably better than expected number appears to be full risk-on (despite its potential for bringing the end of QE sooner). S&P 500 futures smashed through stops and stromed above 1600 for the first time ever. Treasury yields snapped 6bps higher. Gold plunged $25 and the USD surged. JPY appears the biggest mover for now with a 120 pip swing lower. Question is... will the knee-jerk hold through the open? VIX futures are down a mere 0.3 vols on the news.
Seems (as always recently) - Stocks were right.. as TSYs snap higher in yield and play catch up...
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VIX futures don't seem so enthused...
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