Today is not bringing about much news for the marketplace BUT I find it interesting to see that not 1 day since the markets gained over 50bps from the horrible jobs report that the trading numbers have fallen to levels just slightly above last week (pre announcement).
The FNMA 3.0 coupon is now trading at 101.625 and based on its trends I think we are likely to see the new range have 101.500 as support and 102 as resistance. That should not be the case after a jobs report off by 30% of expectations but looks to be the case.
Here is today's data...
We have a light calendar this week with PMI data today, followed by International Trade tomorrow, the FOMC minutes from the September 16th-17th meeting on Thursday, and Import/Export Prices and Wholesale Trade on Friday. The Final September reading for Markit US Composite PMI fell to 55.00 vs. 55.30 prior and the Final September reading for Markit US Services PMI fell to 55.10 vs. 55.60 prior (consensus 55.60). Treasuries are slightly lower this morning following the data release and the curve has steepened
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