Selling Spree Continues, But Gently

Bonds were focused on this morning's ISM Services Index with some traders waiting to see more evidence of economic fallout from tariff-related uncertainty. Instead, the index moved slightly higher and was rather uneventful by the time all sub-components were considered.  Not enough fuel there for bond bulls, so the bears kept the 3 day selling spree going, ultimately getting 10yr yields back over the 4.34 technical level that got so much play time in March. 

Econ Data / Events
    • ISM Services
      • 51.6 vs 50.6 f'cast, 50.8 prev
    • ISM Prices
      • 65.1 vs 60.9 prev
    • ISM Employment 
      • 49.0 vs 46.2 prev
Market Movement Recap
09:36 AM

stronger overnight, but modestly weaker in early trading.  MBS down 2 ticks (.06) and 10yr up 1.3bps at 4.324

10:29 AM

Additional weakness after ISM data.  10yr up 3.7bps at 4.346.  MBS down an eighth of a point. 

11:12 AM

Bouncing back a bit.  MBS down only 3 ticks (.09) and 10yr up 1.8bps at 4.329

01:39 PM

10yr up 5.5bps at 4.366 and MBS down nearly a quarter point.

03:17 PM

Nice little bounce off the weakest levels.  MBS down 2 ticks (.06) and 10yr up 2.8bps at 4.338