After a weaker overnight session, bonds bounced back swiftly after this morning's ISM Manufacturing data. The headline was roughly as-expected, but sharply weaker employment and "new orders" outweighed the highest "prices paid" component in more than 2 years. It took less than 15 minutes for moderate losses to flip to moderate gains. Very little happened after that apart from a slow and mostly steady trickle to even stronger levels. It bears repeating that the gains were centered on econ data as opposed to any other news.
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- ISM Manufacturing
- 50.3 vs 50.5 f'cast, 50.9 prev
- ISM Prices
- 62.4 vs 56.2 f'cast, 54.9 prev
- ISM Employment
- 47.6 vs 50.1 f'cast, 50.3 prev
- ISM New Orders
- 48.6 vs 54.6 f'cast, 55.1 prev
- ISM Manufacturing
Bouncing back to positive territory after ISM data. MBS unchanged and 10yr down 2.1bps at 4.194
Stock losses spilling over to help bonds again. 10yr down 4.1bps at 4.174. MBS up 2 ticks (.06).
Best levels of the day. MBS up 3 ticks (.09) and 10yr down 5bps at 4.165
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