Light Volatility After Initial Losses

The first day of the new month began with some potential excitement, albeit not the good kind. A corporate bond offering from Alphabet pushed yields quickly higher just before 8am. Lackluster results in the ISM Manufacturing data helped push back in the other direction, but only briefly. The rest of the day was spent with yields drifting sideways near the AM highs, ultimately making for the weakest close since October 9th, but only modestly worse than last Thursday.

Econ Data / Events

ISM Manufacturing Employment (Oct)

46.0 vs — f’cast, 45.3 prev

ISM Manufacturing PMI (Oct)

48.7 vs 49.5 f’cast, 49.1 prev

ISM Mfg Prices Paid (Oct)

58.0 vs 61.7 f’cast, 61.9 prev

Market Movement Recap

10:11 AM Moderately weaker overnight with a modest bounce back after ISM data.  MBS still down an eighth and 10yr up 2.9bps at 4.104

01:05 PM Recovering a bit. MBS down 3 ticks (.09) and 10yr up 2.9bps at 4.105

03:43 PM Broadly sideways at slightly weaker levels.  MBS down an eighth and 10yr up 3bps at 4.106