MBS RECAP: Bonds Revel in Weak ISM Services Data

Posted To: MBS Commentary

When it comes to economic data that moves bond markets, there are only a few reports that compete for the 1st-runner-up spot behind Nonfarm Payrolls. ISM Non-Manufacturing is one of them. In fact, both of the ISM reports (manufacturing and non-manufacturing) are highly regarded and highly potent market movers. The trick is that they only have big impacts when they fall far from forecast (unlike NFP, which can have a big impact even if it's right on the money). Today's ISM Non-Manufacturing data (or "ISM Services" for those who like to keep things cleaner) was definitely far from forecast. The "PMI" (the main component of the data, short for "purchasing manager's index") came in at 51.4 vs a median forecast of 55.0. The other headline component, "business...(read more)

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