• ISM Non Manufacturing
  • Headline (PMI)
    • 58.6 vs 57.5 forecast
  • Prices Paid 
    • 64.3 vs 61.8 previously
  • Business Activity
    • 61.3 vs 59.3 forecast

Bonds already looked to be running into resistance ahead of this morning's econ data.  That process began at roughly 8:20am and involved stocks and European bonds as well.  The biggest bounce occurred at 9am and was a byproduct of a quick bout of short-covering in both US and European bond markets.  Yields have been moving higher since then.

The ISM data provided another little jolt of weakness, taking us to our worst levels of the day (still in positive territory at the moment).  Fannie 4.0 MBS are down just over an eighth of a point from the morning's highs.  Those highs were stable enough at the time that we can't rule out some small amount of negative reprice risk among the jumpiest few lenders.  Others would need to see several more ticks of weakness before considering reprices.  

10yr yields are up 2-3 bps from the lows but still down 1.83bps on the day at 2.926.