Institute for Supply Management Manufacturing Index
Filed under: Economic Indicators, Mortgage Rates Predictions
ISM Index | Reported 48.6 | Est 48.2 | Prior 48.3 | ELEVATED
The Institute for Supply Management [ISM] Index for the manufacturing sector came in better than expectations. A reading lower than 50 still signals further shrinking in the economy, but investors like “not that bad” news and stocks have benefited. UBS has managed to write down $19,000,000,000 and investors think it’s a sign of the credit crunch coming to an end… I wouldn’t be quick to jump on that band wagon, but let’s hope. Mortgage Backed Securities are off -28bp on the day. It is important to understand that mortgage rates do not correlate with the 10-Year Treasury; it is currently -103bp on the day. 30 Fixed are about 5.875% today.
Institute for Supply Management [ISM] Manufacturing Index
The ISM surveys 400+ companies purchasing manager’s throughout the US. The managers surveyed give their current opinion of their business outlook. The results are diffused, comparing their previous answers with their current outlook. When the index is at 50% Read more