MBS ALERT: Lows of the Day After ISM Data
By:
•
After the ISM manufacturing PMI number came in higher than expected (48.9 vs. 46.2)...the 10 yr TSY yield rose from 3.56 to 3.62 and the "rate sheet influential" FN 4.5 fell 12 ticks to 99-30...the lows of the day.
If your lender has already published they are likely to reprice for the worse. If your lenders have not published...rate sheets may be delayed while the market finds a stable range. Look for the 10 yr to test 3.65 and possibly 3.72. If weakness persists..."rate sheet influential" prices will likely fall further.