Stocks Refuse To Bow. Bonds Back Down After ISM Data. Reprices Possible

Between a better than expected ISM report and the stock market's somewhat surprising unwillingness to sell-off on the NFP news, the 10yr note is showing weakness, already breaking well out of it's previous flag/triangle discussed oh so recently.  At this point the selling has moved slightly beyond that of a simple and expected consolidation preceding further gains, and evolved in to more of a genuine cause to question the remaining direction of the day.  We're on the edge of our seats.

Blue line overlaid there is the S&P by the way.  So far, with respect to yesterday's trading, we might take some solace in the fact that MBS have not penetrated down into yesterday's range in nearly the same way treasuries have. 

Still... if you already have rates this morning, those MBS losses are enough to see reprices for the worse.  Sorry to be the bearer of bad news.