The headlines look very strong. Big beat (256k vs. 165k expectations) on the Establishment data. The beat was all in private payrolls (very good). Downward revisions, but only 8k (not bad). Unemployment rate drops to 4.1% (the Household Survey added 478k – which catches up on some recent weak prints relative to the Establishment Survey). Annual earnings ticked down marginally, but hours worked remained the same – call it a “wash?” I continue to believe that seasonal adjustment factors overstate data during this time of the year (our main reason for thinking that we would get a strong report), but ... NFP Instant Reaction – Look Out Above on Yields