The jobless claims number went up quite a bit, but the idea here is that because it stayed below 300,000 there's a good chance that the U.S. unemployment rate continues to fall.

The market is on guard after Broaddus reminded us that the day of reckoning when the Fed raises rates is drawing nearer and the rebound in global stock markets is adding fuel to the fire.

The markets were prepared for Greenspan to end his final meeting with the funds rate at neutral. What they got instead is the statement that rate hikes still 'may be needed.' This was not music to the market's ears.

The details of the GDP report may have given Treasuries a boost as the Fed's preferred inflation target, the core personal consumption expenditures index, was revised down to 1.7 percent from 2 percent for the first quarter,

The curve should be flattening if the Fed is assumed to be still tightening.

The economy surprised on the upside and inflation was a surprise on the upside so (10-year Treasury) yields tested the level we hit last week which was 5.14 percent.

The economy is creating over two million new jobs a year and these workers will need housing. Fears of a collapse in the housing market have been overblown.

All eyes will be on the jobs report. The Fed is still worried with inflationary pressures, and may very well not be done with rates. But as long as the economy keeps growing without a substantial pickup in inflation, we may see bonds falling and stocks rising.

Cars seem to be pivotal in keeping the wheels of consumer spending turning and certainly this quarter is starting out with a thud.

Buyers may be eager to lock in rates now as mortgage rates are expected to trend higher. Many homes go on the market in the first days of spring, and this is the first real evidence that buyers are taking a fresh look at the market.