- ISM Non-Manufacturing
- 55.5 vs 57.0 forecast, 56.1 previously
- Business Activity 59.5 vs 58.8 forecast
- Prices: 55.7 vs 58.7 previously
- New orders: 58.1 vs 59.0 previously
As is the typically the case with ISM data, the headline PMI number (55.5 vs 57.0 in this case) is the most important market mover. ISM services had been trending higher, in general since 2016, and just began to drop off that trend last month. Even then, it has been a stronger counterpart to the shakier manufacturing PMI. For it to have fallen to 52.8 is a relatively big deal, and it's no surprise to see bond markets reacting by pressing farther into positive territory.
10yr yields are 2.2bps lower on the day at 2.523 and Fannie 3.5 MBS are now 5 ticks (.16 higher) at 101-01 (101.03).