Market Analysis

Bonds are flat this morning despite a much better than expected ADP Private Sector job change report (typically one would expect bonds to sell off on a strong report).  Europe is back on investor's radar screens with borrowing costs rising throughout the region. 

In economic news, ADP reported a 325,000 increase in Private Sector payrolls vs expectations for a 180,000 figure.  Separately, Initial Jobless Claims for the week ended 12/31 came in at 372,000 vs expectations for a 375,000 figure.  The December Institute of Supply Management (ISM) Services Sector Index came in at 52.6 vs expectations for a 53.0 figure.