Steady Gains Throughout The Day

Steady Gains Throughout The Day Bonds began the day in modestly weaker territory although MBS were fairly quick to get back to 'unchanged' while 10yr Treasuries couldn't duplicate that feat until the afternoon. There were no clear correlations with other markets and no notable risks on the econ calendar. The gains were slow and steady enough to suggest an absence of discrete catalysts. That could change on Wednesday with the confluence of ADP and ISM Services--both capable of influencing the bond market, even before the shutdown data dynamics temporarily magnified private data's importance. Econ Data / Events ISM Manufacturing Employment (Nov) 44.0 vs -- f'cast, 46.0 prev ISM Manufacturing PMI (Nov) 48.2 vs 48.6 f'cast, 48.7 prev ISM Mfg Prices Paid (Nov) 58.5 vs 59.5 f'cast, 58.0 prev Market Movement Recap 10:38 AM Weaker start, but bouncing back a bit now.  MBS up 2 ticks (.06) and 10yr yield up 1bp at 4.098 01:13 PM Best levels of the day with MBS up 3 ticks (.09) and 10yr up only half a bp at 4.092 03:43 PM Just a bit stronger. MBS up 5 ticks (.16) and 10yr down 0.1bps at 4.087