Posted To: MBS Commentary

Bonds sold off clearly and somewhat abruptly following a Bloomberg article on the trade negotiations being in better shape than markets might assume based on the previous day's trade headlines (which were also the biggest market movers of the day). All of the above completely superseded any potential impact from econ data. In fact, the big Miss in the ADP employment data had absolutely no effect and a mixed bag in the ISM services data only served for fuel more selling (for potential reasons I discussed in this update ). To paraphrase the update, the "new orders" component of the ISM data is the most forward looking, and traders are interested in the most forward looking data possible right now because none of the current crop of data is going to matter once the trade deal (or…(read more)

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Source: Mortgage News Daily