Mortgage bonds are up 22 bps this morning. After the selloff Friday afternoon, pricing should be right inline with the Friday morning rate sheets. Just 9 bps higher and bonds hit the strong resistance level at the 200 day moving average. Wait and see what rates do after the ISM number is released this morning at 10am.
The ISM is released on the 1st business day of each month reflecting the manufacturing industry for the previous month. Its a survey of purchasing executives at roughly 300 industrial companies. A number above 50 show expansion and below 50 contraction.
Last month's number was 48.6 and it is estimated this month to be 48. Stay tuned...as it is a market mover.
Update 1040am: ISM came out at 49.6 better than expect but doesn't seem to be enough to break through the 200 day MA