Be still, our beating hearts!  This morning's economic data came out weaker and bonds instantly engaged in a logical and sensibly-sized rally.  Trading levels were weaker ahead of PMI and New Home Sales Data.  The lowest PMIs since early 2020 and the lowest New Home Sales since early 2016 took a sad song and made it better--at least for now.  The day is young and the market is generally defensive.  In other words, it's a refreshing start, but not one that advocates complacency.

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In the bigger picture, this morning's weakness in bonds was fairly important because it brought yields up to a technical level we haven't seen in more than a month, but one that was arguably the most frequently hit ceiling for 10yr yields (3.07%).  If bonds are able to build on these gains it would build an even stronger case for the sideways, volatile range.