The US Treasury market is under pressure following this morning’s trio of better than expected economic data. First, Markit’s manufacturing purchasing manager’s index (PMI) edged out the 51.2 printed expected by the Bloomberg consensus, coming in at 51.3. Then, ISM manufacturing index registered 49.5 beating the 48.5 that economists were anticipating. Aside from a disappointing number out of GM, US auto sales have been crushing expectations. All of this has lead to heavy selling across the Treasury complex. Weakness is most notable in the belly of the curve — or intermediate maturities — where yields are higher (lower prices mean higher yields) by as much as![]()
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