Friday's action violates our most basic rule of significant Employment day patterns: It was a non-linear day. After an initial sell off in the rates space, the duration buying and bull flattening took over. Equity settled into a snooze.
Open interest has turned and grown tilted toward longs in Bonds, tens and even the back Eurodollars. For Eurodollars, this is a stunning shift as the Fed has stayed the course and the data has rebounded somewhat (participation rate birthers go to the end of the line) Bull Flatteners are the trade du jour, with bears in the same trade being paid for the wrong direction.
I think the short side of the rate space will open up for business again soon. The refunding will be the first test.