The bond market has been struggling to assess the economy due to the lack of economic data but today we got two reports:ADP employment at +42K vs +28K expectedISM services at 52.4 vs 50.8 expectedAs you can see, both were stronger and that has the market starting to believe Powell when he said that a December rate cut isn't certain "far from it". The indication from the data is that the US economy is doing better, and that's also the indication from repeated record highs in the stock market.The fear is that AI is creating jobless growth, leaving the Fed twisting in the wind on its dual mandate. The problem in the ISM numbers is that the prices paid index also rose to the highest in a year at 70.0. Fed officials have begun to fret about inflation and still aren't particularly close to the 2% target.The danger for yields now is that we push through 4.20% and test the September highs. That's something Bill Gross recently argued saying "10 year Treasury has seen its best days as well.4.25 short term target."All this is positive for the US dollar, negative for gold and should weigh on stock markets at the margins, though I fear it may come as a shock to stocks if/when Powell doesn't cut on December 10. The pricing now is at 61% from 68% earlier today. This article was written by Adam Button at investinglive.com.