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Moderately weaker overnight and little-changed after ADP data. MBS down 6 ticks (.19) and 10yr up 5bps at 4.273
MBS up to "unchanged" after the ISM data. 10yr up 1.6bps at 4.24. MBS outperforming due to strength in the short end of the yield curve (i.e. 2yr yields are down 0.8bps on the day).
stronger still... MBS up an eighth and 10yr down 2.8bps at 4.196
Steady near best levels. MBS up 5 ticks (.16) and 10yr down 4.1bps at 4.183
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Bonds drifted steadily higher in yield during the overnight session with most of the weakness seen after European markets opened. The net effect was roughly 4bp increase in 10yr yields and an eighth of a point of weakness in MBS. ADP data did no harm at 8:15am, but bonds stayed near opening levels during the first 2 hours. Today's marquis data--ISM Services--came out much weaker than expected. That was all it took to spark a reversal that leaves 10yr yields almost 3bps lower heading into the PM hours. The eighth point loss in MBS has turned into an eighth point gain.