What Will it Take For Bonds to Recover?
What Will it Take For Bonds to Recover?
Another day, another sell-off without any satisfying explanations. To be fair, you could say bonds just traded the curve today with anything 3yrs or shorter rallying at the expense of the longer end of the curve. But for the mortgage market, <3yrs is too short-term to matter. Data and headlines did not line up well at all with the weakness, so take your pick from the general themes we've added to the daily lock/float considerations. At some point, yields will have moved high enough to motivate investors to buy bonds for investment purpose (as opposed to tactical or compulsory trading purposes). Until then, the trend is not your friend.
What Will it Take For a Recovery
| Time | Event | Period | Actual | Forecast | Prior |
|---|---|---|---|---|---|
| Monday, Oct 05 | |||||
| 9:20AM | NY Fed Bill Purchases 4 to 12 months (%) | $1.946 billion | |||
| 9:45AM | Sep S&P Global Services PMI | Sep | 58.8 | 58.7 | 56.5 |
| 9:45AM | Sep S&P Global Composite PMI | Sep | 58.4 | 58.4 | 56.0 |
| 10:00AM | Sep ISM N-Mfg PMI | Sep | 54.9 | 55 | 55.4 |
| 10:00AM | Sep ISM Biz Activity | Sep | 56.5 | 61.7 | |
| 10:00AM | Sep ISM Services Employment | Sep | 50.1 | 47.8 | |
| 10:00AM | Sep ISM Services Prices | Sep | 74.0 | 72.6 | |
| 10:00AM | Sep ISM Services New Orders | Sep | 59.8 | 60.9 | |
| Tuesday, Oct 06 | |||||
| 8:15AM | ADP Employment Change Weekly | 20K | |||
| 8:30AM | Aug Trade Gap (bl) | Aug | $-102B | $-88.6B | |
| 9:05AM | Fed Williams Speech | ||||
| 10:00AM | Oct IBD economic optimism | Oct | 44.5 | 45.6 | |
| 10:45AM | Fed Bowman Speech | ||||
| 11:30AM | 6-Week Bill Auction (%) | 3.970% | |||
| 1:00PM | 3-Yr Note Auction (bl) | 58 | |||
| 7:00PM | Fed Logan Speech | ||||