Tuesday's session was infinitely more interesting than Monday's with the caveat being Monday was a total snooze-fest. Bond market volumes were much closer to recent averages and there was even some logical, data-driven volatility. As always, volatility can go both ways and today's went the right way after S&P PMIs came in well below forecast in both Manufacturing and Services sectors. Relative to recent norms, the move was far from big, but it looked big compared to Monday. Notably, even before the data, yields were holding under the technical level at 4.65. The gains merely solidify the sideways vibes that have been in place since the middle of last week.
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- S&P Services PMI
- 50.9 vs 52.0 f'cast
- S&P Manufacturing PMI
- 49.9 vs 52.0 f'cast
- S&P Services PMI
Weaker overnight, but erasing losses after PMI data. 10yr down 2.6bps at 4.584. MBS unchanged in 6.0 coupons, up 6 ticks (.19) from lows.
MBS catching up with the rally, now up 5 ticks (.16). 10yr down 3.2bps at 4.578.
Solid 2yr auction. Near best levels. 10yr down 3.7bps at 4.573. MBS up 6 ticks (.19).
Off the best levels, but not by much. MBS up an eighth on the day. 10yr down 1bp at 4.60
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