In several ways, today is/was something of a warm up for the rest of the week. In fact, tomorrow could be similar in that the biggest events of the week don't start hitting until Wednesday.
Today's data, ISM Non-Manufacturing, is no slouch though, and was perfectly capable of helping bond markets add to overnight gains when it arrived weaker-than-expected at 10am. That bit of connectivity between data and trading levels was nice to see for a change, but the movement fell far short of extreme.
By the afternoon, MBS topped out at 103-11 in Fannie 4.0s and hit highs most frequently at 103-09, just 2 ticks over Thursday's 103-07 highs. There was a small, temporary swoon heading into 3pm resulting in one negative reprice. Prices held their ground from there on out and we're currently heading toward the door about a quarter of a point improved in MBS.
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