Negative reprices are more likely after the 10am data, which is frankly all the proof anyone will ever need that the Fed doesn't receive economic reports several days ahead of time (like some conspiracy theorists suggest). If the Fed had access to these reports, it couldn't have managed to be as cautious as it was 2 days ago.
- ISM Manfacturing
- 56.6 vs 54.2 forecast
- New Orders 58.2 vs 51.3
- Consumer Sentiment
- 91.2 vs 90.8 forecast
- inflation expectations unchanged at decently high levels
- Construction Spending
- 0.8 vs 0.2 forecast
Bonds are tanking. 10yr yields are quickly up 5bps to 2.69%. MBS are off more than an eighth of a point and should lose a bit more ground as they catch up with Treasuries. If we don't bounce right now, reprices are could be widespread, even among lenders who usually wait a bit longer.
