Snowball Sell-Off to Start The Month

Sometimes headlines reference the beginning or end of any given day/week/month just to fill space. On days like today, however, it's a relevant contributor to the selling pressure.  Today's "new month" selling is attributable to investors closing out temporary positions held for last week's "month end."  That was only part of today's drama though.  It was exacerbated by a glut of corporate bond issuance as well as the bailout of First Republic. 

Econ Data / Events
    • ISM Manufacturing
      • 47.1 vs 46.8 f'cast, 46.3 prev
    • ISM Mfg Prices Paid
      • 53.2 vs 49.0 f'cast, 49.2 prev
Market Movement Recap
09:17 AM

bonds sold off on FRC bailout, but have bounce back a bit.  10yr up 4bps on the day at 3.473.  MBS down 6 ticks (.19).

10:18 AM

Additional weakness on ISM data.  MBS down 3/8ths on the day.  10yr up 8.6bps at 3.518.

12:56 PM

weakest levels of the day with 10yr yields up 12.2bps at 3.555.  MBS down almost half a point.

04:11 PM

Snowball selling up until 3:40pm ET.  Small bounce since then.  MBS still down over half a point.  10yr up 15.4bps at 3.587

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