Markets Hit by Glut of Escalation Headlines

Monday's trading session ended up being as simple as it was unpleasant. Bonds lost ground somewhat sharply as war-related headlines kept adding up to additional escalation. Highlights include overnight reports of Iran hitting a U.S. warship with missiles, multiple reports of UAE air defenses being activated, and damage/fire at a UAE oil export terminal. While bonds had a few moments of independence, they were broadly driven by rising oil prices associated with the aforementioned headlines.

Econ Data / Events
    • ISM Manufacturing Employment (Apr)
      • 46.4 vs 49 f'cast, 48.7 prev
    • ISM Manufacturing PMI (Apr)
      • 52.7 vs 53 f'cast, 52.7 prev
    • ISM Mfg Prices Paid (Apr)
      • 84.6 vs 80 f'cast, 78.3 prev
Market Movement Recap
09:20 AM

moderately weaker overnight. 10yr up 3.5bps at 4.41 and MBS down 7 ticks (.22).

11:31 AM

Weakest levels after headlines regarding Iran attacking UAE. MBS down 3/8ths and 10yr up 6bps at 4.435

02:23 PM

sideways just off weakest levels. MBS down half a point and 10yr up 7.1bps at 4.447