Downbeat Data Primes The Pump For Shift

Tuesday's Job Openings report combined with Monday's ISM Manufacturing slump to prime the pump for a "downbeat data" confirmation in the week's remaining data.  These include Wednesday's ISM Non-Manufacturing and, more importantly, Friday's jobs report.  If the remaining data sings a similar tune, it would be hard to make a case for another rate hike from the Fed although next Tuesday's CPI could cast doubt on such conclusions if it happened to surprise to the upside.  Either way, it's no surprise to see yields towing the line of lower range boundaries while the relevant econ data suggests the most resilient economic momentum is in the rearview.

Econ Data / Events
    • JOLTS
      • 9.931m vs 10.4m f'cast, 10.824m prev
    • Factory Orders
      • -0.7 vs -0.5 f'cast, -2.1 prev
Market Movement Recap
09:12 AM

steadily weaker in Europe on sovereign debt supply and higher-than-expected PPI.  10yr up 7bps at 3.48 and MBS down just over a quarter point.

12:22 PM

Nice rally intact after JOLTS data.  10yr down 7bps at 3.342.  MBS up just over an eighth of a point.

03:02 PM

Best levels of the day at the 3pm CME close.  10yr down 7.4bps at 3.339.  MBS up 6 ticks (.19).