Stocks and the corporate bond markets felt good again as the "risk-on" trade continued for another day.

The NFIB Small Business Optimism survey showed some improvement.

Coming on the heels of consumer credit figures that showed a notable increase, we are slowly beginning to see the real economy stir.

But importantly, much of the job creation that was reflected in the December employment reports came from relatively low wage positions.

As for the markets, everybody loves to buy into strength and sell into weakness.

The relative stability in the Euro-zone market means investors are not dumping assets which are in the money.

Now that things seem better headline wise the waters are (seemingly) safe again.

The question is: what happens when that relative stability is upset again?

It will be a classic flight to quality with Treasury bonds getting bid up again.

Ultimately, nothing fundamental has changed across the Atlantic; we are simply caught up in the January honeymoon.

In the corporate bond markets, given the investor emphasis on liquidity, much of the cash that is sitting on the sidelines is being put to work in the most liquid primary new issue bonds as opposed to less liquid off the run secondary bonds.

To illustrate, the order books (demand) for today's mega SabMiller bond transactions ($7 billion total in a 4-part multi maturity bond deal) totaled more than $25 billion, making it one of the largest order books ever.

Interestingly market-making dealers were not getting asked to bid paper so that accounts can make room by selling old bonds to go into these new deals; it is all fresh cash being put to work.

This is an about face from the end of last year.