Bonds Blasted by Data and Stop-Gap
Bonds Blasted by Data and Stop-Gap
The stop-gap bill that averted the government shutdown was worth some instant selling in the bond market. It was not a given that this would be the reaction as past examples have gone both ways. We also can't rule out random tradeflows associated with the changeover in the month/quarter. Selling intensified after the 10am ISM Manufacturing data with losses peaking just after the noon hour. 10yr yields hit a new long term high at 4.701 and MBS lost just over half a point.
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- S&P Manuf. PMI
- 49.8 vs 48.9 f'cast, 47.9 prev
- ISM Manuf. PMI
- 49.0 vs 47.8 f'cast, 47.6 prev
- ISM Manuf. Prices
- 43.8 vs 48.6 f'cast, 48.4 prev
- S&P Manuf. PMI
weaker overnight. 10yr up 6.4bps at 4.643 and MBS down 10 ticks (.31).
Some additional weakness after PMI data. MBS down 11 ticks (.34). 10yr up 7.7bps at 4.656
10yr up 11.4bps at 4.693, highest since 4.701 seen at 12:10pm. MBS down 19 ticks (.59) in 6.0 coupons.