Mortgage Backed Securities are Minus 34bps this morning. That is the 4th day in a row that MBS are down.

The ISM index reading was 59.9. This number is a survey of 300 purchasing managers. A reading over 50 would signal expansion in manufacturing. Analysts expected a reading of 51.1 and the markets cheered the 59.9 number. This gives support to the PMI number that was released yesterday. Analysts are stating that we were just in a soft patch and they economy will be fine. This news is very bad for the bond markets and rates.

Next week Wednesday and Friday we will get a look at the unemployment picture. That is the only up coming news that could reverse the current march higher in rates. If we see better then expected jobs numbers, rates will increase the pace of their climb.

We will see volume start to slow as the day goes along as investor slip out for a long weekend. It looks like the trend for Milwaukee Mortgage Rates is higher. Have a safe and happy 4th of July.