Posted To: MBS Commentary

Today's key scheduled event was the release of the ISM Manufacturing PMI–one of the several most important reports after the perennial heavy hitter, NFP (aka, the jobs report, which also comes out this week). The Manufacturing PMI has been stuck in a rut with the numbers indicating a contraction in the sector since last August. They were forecast to continue that trend today, but instead, we got the first expansionary numbers since July 2019. Given the bond market's willingness to react to last Friday's Chicago PMI (a sort of regional version of the national numbers represented in the ISM PMI), it was no surprise to see yields rise in response. This hit an already weaker bond market and threatened to take yields back above Friday's highs (1.592% in 10yr yields). More of a surprise…(read more)

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Source: Mortgage News Daily