Bonds are whipsawing around the charts, and thankfully yields have lowered 0.15% from recent highs two days ago. As the 10 year Note increases, the 2/10 spread has narrowed now to only -0.268%. The faster we get back to a positive spread where the short term rates are lower than the longer term rates, the quicker we’ll see the housing market pick back up.
The S&P Purchasing Managers’ Index rose to 51 this month from last month’s 50.2, and beating expectations of 49.5. Mortgage Pricing is worse on the news.