Data Fuels Ongoing Scramble Toward Higher Rates
Data Fuels Ongoing Scramble Toward Higher Rates
Almost the entire month of February has been a mad dash from the lowest rates in months to the highest rates in months. The whole ordeal can be traced back to several key economic reports with mid-tier reports occasionally piling on. Today saw a surprisingly large reaction to mid-tier data (S&P/Markit PMI). The only way to reconcile the disproportionate reaction would be to add some extra overseas selling from the holiday closure and the overnight session (which also saw similarly strong PMIs in Europe). MBS jettisoned almost a full point and 10s spiked almost 14bps to 3.95+ by the 3pm close.
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- Markit Services PMI
- 50.5 vs 47.2 f'cast 46.8 prev
- Markit Services PMI
Weaker overnight with additional selling after Eurozone services PMI data. 10yr up 8bps at 3.904 and MBS down 5/8ths of a point.
Sharper selling after PMI data. 10yr up 10bps to 3.919. MBS down nearly 3/4ths.
Additional weakness in the PM hours, now leveling off in the after hours session. 10yr up 13bps to 3.951. MBS down 7/8ths of a point.