ISM mfg index up 50.2 versus expectations of 48.5

Prices Paid Component 91.5 versus 88.7

Construction Spending Drops .4, less than the expected .6

Both of these are BAD news for bonds.  So far, MBS only down 2 ticks, and I will keep you posted, but vigilance meter now set to the highest of it's three levels: extreme.  If you don't have rates yet, don't worry, this will be priced in.

if you do, lenders may reprice if they panic, but MBS is holding the line so far