The "data dependent" theme kept on rockin' all week. Traders even let the lowly S&P Global (previously Markit) PMI get in on the action today. After opening in slightly stronger territory, a better-than-expected Services PMI reading pushed bonds immediately and obviously into weaker territory. The rest of the day was very flat with yields hitting 5pm at almost the exact same levels seen 5 minutes after the PMI data. Same story for MBS and an even flatter trajectory throughout the day. Bonds continue waiting on headier events of early May, but they could make an exception for PCE and ECI at the end of next week.
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- S&P Services PMI
- 53.7 vs 51.5 f'cast, 52.6 prev
- S&P Manufacturing PMI
- 50.4 vs 49.0 f'cast, 49.2 prev
- S&P Services PMI
Slightly stronger in early trading but losing ground quickly after PMI data. 10yr up 3bps at 3.566. MBS down just over an eighth of a point, and almost 3/8ths of a point from the highs.
Drifting sideways to slightly stronger after the PMI sell-off. MBS down only 3 ticks (0.09) and 10yr yields up only 2bps at 3.555.
Frustratingly flat day for those hoping to be entertained by market movement. Good for MBS relative performance. Bad for wordy analysis. 10yr up 4bps at 3.576, but MBS down the same old 3 ticks (.09) pretty much all day.
MBS Market Alerts
