• ISM Manufacturing 
    • 50.3 vs 50.5 f'cast, 50.9 prev
  • ISM Prices
    • 62.4 vs 56.2 f'cast, 54.9 prev
  • ISM Employment
    • 47.6 vs 50.1 f'cast, 50.3 prev
  • ISM New Orders
    • 48.6 vs 54.6 f'cast, 55.1 prev

Bonds were moderately weaker in the overnight session with 10yr yields just above 4.26% at times.  There was already a decent show of support there, but the ISM data has prompted a decisive reversal with 10s now down 3bps at 4.184 and MBS back to unchanged after being down a quarter point.

This is a somewhat counterintuitive result given the jump in the inflation component of the data, but the other components are weak enough to more than make up for it.