After a bit of a sell off yesterday afternoon, Bonds are bouncing back this morning on weak economic data. The ISM Service Index moves down to a four year low at a reading of 51.6 overall. The employment component of the index actually shows contraction following 25 months of growth.
ADP (the report I love to hate) reports 139,000 new jobs created in February, below the 150,000 expected. Additionally, ADP revised their January number from 175K to 127K new jobs. The “official” Jobs Report will be released this Friday.
This afternoon The Federal Reserve Bank will release it’s Survey on Current Economic Conditions (AKA The Beige Book). This plethora of anecdotal information is released just eight times per year by our appointed monetary regulators/oracles of the economy. It’s impact is moderate at best, but gives a good indication of the data that the Fed is focusing on, which is kind of a big deal when the free markets are looking for guidance as they are today
