It was a choppy session. The data were mixed and corporate deal pricings added volatility. Treasuries sold off on the open, but option-related buying neutralized the initial pressure.
In the Eurodollar pit flows were mixed. Personal income and personal spending data were right in line, but the Institute for Supply Management factory index for January came in at 63.6, vs. a prior reading of 63.4, lower than economists' estimate of 64.7.
The market's reaction to the data was muted. By late morning a round of mortgage-related buying led the market higher. Once the buying ceased, however, prices turned negative. But another round of call buying and two major deal pricings, again moved Treasuries back up in to the green.