MBS is starting the week up a few bps. With the 10-year floating at 2.33%, Fannie 3.5's and 4.0's are up +6 bps.
This morning kicked off a busy week on the economic calendar. First up, PMI came in on the higher end of economists' estimates with very little to no effects visible in the data from the Hurricanes. Second, the ISM manufacturing index beat expectations at 60.8 vs. 58.0 consensus. New orders were a particularly bright spot as the economy continues to gather steam. Lastly, construction spending also beat, up 0.5% month-over-month.
Rate Sheet Impact: Neutral.