Ultimately an Uneventful Week Despite Micro-Volatility

This morning featured an overnight rally driven by weakness in European PMI data and a logical sell-off following much stronger PMI data in the U.S.  Specifically, S&P Global's Services PMI rose to the highest level in more than 2 years.  This is some of the earliest available data for the month of June and the burden of refutation is on incoming data that is week's away (for instance, next week's headline report, PCE, is still for the month of May). Today's selling never got out of hand, however, and that meant the week as a whole was wholly uneventful in the bigger picture. 

Econ Data / Events
    • S&P Services PMI
      • 55.1 v s 53.7 f'cast, 54.8 prev
    • S&P Manufacturing PMI
      • 51.7 vs 51.0 f'cast, 51.3 prev
    • Existing Home Sales
      • 4.11m vs 4.10m f'cast, 4.14m prev
    • Leading Economic Indicators
      • -0.5 vs -0.3 f'cast, -0.6 prev
Market Movement Recap
09:36 AM

Moderate overnight gains, following Europe.  10yr down 4bps at 4.22.  MBS up 3 ticks (.09).

10:43 AM

Weaker after PMI data with 10yr now up 1.2bps.  MBS down 2 ticks (.06).

12:45 PM

Sideways to slightly stronger after AM sell-off.  MBS unchanged.  10yr down 0.3bps at 4.258

04:37 PM

Low volatility afternoon.  MBS up 1 tick (.03).  10yr down 0.4bps at 4.256