December Treasury Bonds are trading higher and U.S. equities mixed following a report that showed U.S. economic growth edged up as expected in the third quarter.

December Treasury Bonds finished under pressure on Wednesday after a Wall Street Journal news story broke saying that the Fed was likely to purchase only about a quarter of the $1 trillion in assets that the market had price in during its latest round of quantitative easing.

December Treasury Bonds have been under pressure since reaching a top at 135’12. The seven day break from this top reached a critical retracement zone overnight at 132’10 to 131’18. This zone is the 50%/61.8% correction of the 129’05 to 135’12 range.

Non-Farm Payrolls were down 95,000. The jobless rate was unchanged at 9.6%. The government lost 159,000 jobs. This number was split between Fed census workers and state workers. The private sector gained 64,000 jobs which was right in line with expectations. The bottom line is the jobs market is not keeping pace with growth in the economy.