Initial jobless claims numbers came out lower than expected.
While ISM manufacturing numbers were below expectations they still point to a positive trend line in the economy's direction.
If you look at the macro data, the economy is slowly on the uptick.
There is a growing divergence between economic fundamentals in the U.S. and fundamentals across the pond in Europe.
Speaking to a cab driver recently, this player asked whether things were better than: 1) before 2008, and 2) a year ago.
The cab driver answered that business had not quite recovered to pre-2008 levels but that things had definitely improved when compared to a year ago.
As for the bond markets, there's still tons of demand for paper.
It's a risk-on market environment.
There is a mountain of cash sitting on the sidelines and investors are looking to put cash to work.
With liquidity still relatively thin in the secondary markets, investors are focusing most of their ammunition on the primary bond pipeline.
Demand for paper is being pushed by all the liquidity in the system, much of which was facilitated by Central Bank actions.
There's a big debt maturity wall coming up in 2014 and corporate issuers are using this opportunity to refinance and raise money at historically low interest rates.
IG (investment grade) bond issuance for the month of February was over $90 billion, the highest ever for any given February.
HY (high yield) bond issuance for the month of February was around $45 billion, again the highest tally for any given February.
What's driving all of this IG and HY issuance?
There is some pent up supply after the lull in the 4th quarter of last year.
But corporations are also looking to issue because they can and not necessarily because they have to.
Yankee (foreign issuers issuing USD-denominated bonds) financial issuance has picked up recently with European banks issuing standard senior unsecured debt in addition to covered bonds.
That being said there are potential shocks coming from the Middle East but investors are overlooking those risks because they need yield.
Late in the day there was a story about a story on Iranian television about a purported Saudi pipeline explosion.
Treasury bonds popped higher, oil prices ticked up, and stocks faltered for a few minutes until the Saudis denied the rumor.
If just a rumor about a rumor can move things, what about the real thing?
Away from geopolitical risk, there is the ongoing European situation which is not quite over.
Investors are almost being forced to ignore the risk factors because rates are so low.
The election season promises to be a very interesting one.