Rate Update 2008-06-02: Bonds Up On Stock Weakness

Bonds were up today despite strong economic news. Rates however should still increase about .125 to price due to weakness from Friday's trading. The Institute for Supply Management (ISM) report was significantly stronger than expected, indicating that the industrial sector is stronger than expected. Bond trading, however followed the course of the stock market, which was weak today. Tomorrow, we'll receive the Commerce Department's Factory Orders for April, which will report again on the strength of the manufacturing sector.