Bonds rallied modestly in the overnight session after Trump stated the United States may leave the war soon. Those gains have been more than erased (simply hardly) after this morning’s information. Both ADP and Retail Sales were more powerful than anticipated although it ought to be kept in mind that Retail Sales is for the month of February in this case. New Trump headlines also contributed to the pull-back as he declined to offer a timeline on an Iran exit. Since 9:30 am ET, MBS were just a hair weaker than unchanged and 10yr yields were up 1.3 bps at 4.327. ISM Manufacturing stays on deck at 10am ET and a big beat/miss might have an effect regardless of basic preoccupation with war-related headings.
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