Today's ISM report confirmed what was already visible in the Markit PMI figures (see discussion) - the "spring slowdown" in US manufacturing is here. The table below shows the breakdown of the month-over-month changes - orders and production seem to be the main drivers. Weakness in Backlog of Orders does not bode well for the sector going forward.
The ISM manufacturing indicator is now at the lowest level since 2009:
Bond prices rose as a result, with the expectation that the US growth is not nearly as robust as some have thought. Of course bond investors are still in a selling mood, and we are likely to see yields drift higher.
|10y note futures (source: Investing.com)|
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