Posted To: MBS Commentary
Surprisingly and refreshingly, today’s ISM Manufacturing data has been a clear source of motivation for trading activity today. After it came out at the weakest levels since June, bonds rallied significantly and stocks fell sharply. There’s a chance that investors are sensing a negative shift in economic momentum as the ISM numbers were unable to break above an index value of 60.0, despite coming close in 3 out of the past 5 months. Indeed, 59.3 is the highest reading since June 2004, but there have been 14 reports at 57.5 or higher. 15 minutes before the ISM data, the less-highly-regarding Markit PMI data offered a potential early indication of weakness in the manufacturing sector. It came in at the lowest levels since January 2014, and bond markets seemed to react to that. This is…(read more)
Via:: MBS MID-DAY: Bonds Swing From Losses to Gains After Manufacturing Data
