Thursday didn’t exactly have any high risk events from a data standpoint with weekly Jobless Claims being the most notable report. Claims came in very close to consensus while continued claims fell back below 1.9m. One could argue that there was a brief selling response in bonds, but it didn’t last. Most of the AM weakness was a factor of overnight movement, apparently led by sharply weaker Japanese government bonds (a rare catalyst for US bonds). As the AM hours wind down, Treasuries are now just barely weaker on the day. MBS are down only an eighth of a point after starting out down nearly 3/8ths.