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Rates Down Despite Strong Economic Reports

Rates were down today despite two reports showing strong economic data.  Rates should improve by .375 to price. 

The Institute for Supply Management (ISM) showed an unchanged reading, where a drop was expected.   March’s Personal Income & Outlay’s report showed declining personal income, but not as steep a decline as was expected.  Both should be bad news for rates.  

However, the market is focused on tomorrow Employment report and expects an increasingly high unemployment rate.  If things turn out better for employment, things could turn around and rates may shoot upward.  If it comes in weak as expected,  expect rates to stay unchanged. 

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