And though there was a moderately busy economic data calendar this morning, it was a Cliff-related headline from Senate Majority Leader Reid that sent bond markets into their best territory in two weeks and stocks to their lowest levels since before the Employment report on December 7th. 

The Federal Reserve completed a round of scheduled “Twist” buying at 11 a.m., but rather than bounce back into weaker territory (as is often the case following Twist buying), bond markets have been more keen to follow the broader risk-off trade, maintaining gains thanks to stock selling.