Bond Market Update

Data follow mixed line

• This morning's data has followed a generally mixed line. The New York Fed Empire State Manufacturing Survey was much weaker than expected, the preliminary December S&P Global US Manufacturing PMI was weaker than last month, yet the Services PMI, which covers the nation's largest economic sector, was stronger than last month.
  • NY Fed Empire State Manufacturing (Actual 0.2; Briefing.com consensus 10.0; prior 31.2). The cutoff between expansion and contraction is 0.0.
  • Prelim. December S&P Global Manufacturing PMI (Actual 48.3; prior 49.7). The cutoff between expansion and contraction is 50.0, so manufacturing activity contracted at a faster pace than the prior month.
  • Prelim. December S&P Global US Services PMI (Actual 58.5; prior 56.1). The cutoff between expansion and contraction is 50.0, so services sector activity expanded at a faster pace than the prior month.
• The 2-yr note yield and the 10-yr note yield have hit a new session high, concentrating on the Services PMI number.
• Yield check:
  • 2-yr: unch at 4.24%
  • 3-yr: unch at 4.22%
  • 5-yr: -1 bp to 4.24%
  • 10-yr: -1 bp to 4.39%
  • 30-yr: -1 bp to 4.61%