Rates Up Slightly On Manufacturing Streak

Rates are up slightly today as mortgage bonds are down (FNMA 3.5 benchmark coupon down 16 basis points) on better manufacturing data from the Institute of Supply Management (ISM). Notes on that report and today’s other data below.

ISM Manufacturing (April 2012)
– ISM Index of Manufacturing sector 54.8
– Up from previous 53.4
– 50 is dividing line between expansion and contraction
– This makes a 33 month streak
– Mark this as good economic news after weeks of supply side weakness.

Construction Spending (March 2012)
– Construction Spending Month/Month +0.1%
– Construction Spending Month/Month +6.0%

Retail
ICSC-Goldman Store Sales (Week ended 4/28/2012)
– Store Sales week/week -0.3%
– Store Sales year/year +4.2%

Redbook (Week ended 4/28/2012)
– Store Sales year/year +2.9%