Downbeat Data Puts Downward Pressure on Rates

Although there was some cause for concern in the overnight trading session due to an OPEC-driven oil price spike, bonds fought back during the domestic session.  A resoundingly downbeat ISM Manufacturing report was the one and only big, obvious market mover (10am ET), posting recessionary figures at the headline level as well as the relevant sub-headings. Bonds quickly turned positive on the day after that and held calmly in a sideways range through the 3pm CME close. 

Econ Data / Events
    • ISM Manufacturing Index
      • 46.3 vs 47.5 f'cast, 47.7 prev
    • ISM Prices
      • 49.2 vs 51.3 prev
    • ISM New Orders
      • 44.3 vs 47.0 prev
    • ISM Jobs
      • 46.9 vs 49.1 prev
Market Movement Recap
09:12 AM

Flat to slightly stronger after initial overnight weakness.  10yr still up 3bps at 3.5%.  MBS down just over an eighth of a point.

10:50 AM

Much stronger after ISM data.  MBS up a quarter point.  10yr down 4.5bps at 3.425.

03:34 PM

Sideways to slightly stronger all afternoon.  Up 6 ticks (.19) in 5.0 coupons and down 4.5bps at 3.426 in 10yr yields.

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