Market Trends & Interest Rates - Treasury yields are rising as investors react to weaker jobs data and the potential impact of President Trump's tax and spending package [1] - Interest rates may have peaked in terms of low rates, particularly given the holiday-shortened week [2] - The 10-year Treasury yield continues to move higher [3] Labor Market Analysis - ADP small business job loss data at 8:15 AM EST made some traders nervous, causing yields to drop initially [2] - A potentially weakening labor market could influence the Federal Reserve's decisions [4] - Uncertainty remains whether the day's report is indicative of the larger jobs number to be released tomorrow [5] Federal Reserve (The Fed) & Monetary Policy - A weakening labor market could hasten the Fed's easing campaign [4] - Fed fund futures gravitated towards the upside, indicating expectations of more easing [4] - The market is unsure if today's report is a one-off or a clue about tomorrow's jobs number, impacting expectations for the Fed [5] Bond Market Dynamics - The 2-year yield reflects the most information regarding the Fed [3] - The 210 spread (difference between 2-year and 10-year Treasury yields) bounced back and steepened [3] - The D's contract (likely referring to a specific futures contract) initially reflected the two-year yield's movement but almost returned to unchanged [5]