If you had to guess at what this morning’s economic data would have done to the bond market ahead of time, current trading levels would almost certainly be a pleasant surprise.  In a nutshell, producer inflation was much higher than expected, jobless claims remained in the 220s, and retail sales surged to 0.6% vs a 0.2% forecast.  Despite al that, bonds are only modestly weaker.  Credit the global market’s response to today’s ECB announcement, best characterized as “a dovish hike.” 

Zooming in and focusing on Treasuries shows more of the timing of the morning’s important events:
Source: Mortgage News Daily