Ultimately Underwhelming Despite Seemingly Significant Data

Ultimately Underwhelming Despite Seemingly Significant Data There was certainly the potential for volatility today with the confluence of ADP, ISM, and Job Openings data. But the results ended up being close enough to consensus to obviate any massive reactions. Yields hit their lowest levels in a week after ADP came in slightly softer, but most of the rally was already in place from the overnight session. Stronger ISM and job openings pushed bonds back in the other direction, but not enough to result in bond market losses or negative reprices.  Econ Data / Events ADP Employment 41k vs 47k f'cast, -32k prev ISM N-Mfg PMI (Dec) 54.4 vs 52.3 f'cast, 52.6 prev ISM Services Employment (Dec) 52.0 vs -- f'cast, 48.9 prev ISM Services New Orders (Dec) 57.9 vs -- f'cast, 52.9 prev ISM Services Prices (Dec) 64.3 vs -- f'cast, 65.4 prev USA JOLTS Job Openings (Nov) 7.146M vs 7.60M f'cast, 7.670M prev Market Movement Recap 08:17 AM Steadily stronger overnight and slightly stronger after ADP.  MBS up 5 ticks (.16) and 10yr down 4.2bps at 4.123 10:02 AM Losing ground after 10am data. MBS back to unchanged and 10yr down 1.3bps at 4.152 12:06 PM Recovering a bit into mid-day. MBS up 3 ticks (.09) and 10yr down 2.8bps at 4.138 04:42 PM Off the strongest levels, but still in stronger territory. MBS up 2 ticks (.06) and 10yr down 1.6bps at 4.149