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Treasurys tumble after fast Chicago PMI report

  • The read of 65.9 is the highest since March 2011, and was far stronger than the 54.5 expected. It was led by double-digit gains in New Orders (highest level in 9 years), Production, and Order Backlogs.
  • The 10.2 point gain from September's 55.7 print is the largest in over 30 years, and marks just the 3rd time in a decade the index has risen for four consecutive months.
  • MNI Chief Economist Philip Uglow: "The government might have shut down but Chicago area companies powered ahead in October as orders and production surged."
  • Up nicely earlier, Treasurys (TLT) are now down a hair for the session. The 10-year yield is one basis point higher at 2.55%.
  • ETFs: TBT, TLT, TMV, TBF, EDV, TTT, TMF, ZROZ, TLH, SBND, DLBS, VGLT, UBT, TLO, FSA, LBND, TENZ, TYBS, DLBL.
Comments (8)
  • al roman
    , contributor
    Comments (4613) | Send Message
     
    Throw that into the equation.
    31 Oct 2013, 10:50 AM Reply Like
  • The Delivery Guy
    , contributor
    Comments (131) | Send Message
     
    Sequester leads to spike in GDP growth rate, Temp Shutdown leads to spike in Chicago PMI... hmmm... Reagan is looking more and more right... government is the problem.
    31 Oct 2013, 11:43 AM Reply Like
  • optionsexpert
    , contributor
    Comments (279) | Send Message
     
    You think that is the reason for the spike? LOLLLLLL
    31 Oct 2013, 12:05 PM Reply Like
  • Herb Smith
    , contributor
    Comments (216) | Send Message
     
    And how exactly does a temp shutdown result in a surge in orders and production? Delivery guy, it sounds like a political theory unsupported by any rational explanation of business response to the circumstances.
    31 Oct 2013, 03:03 PM Reply Like
  • American in Paris
    , contributor
    Comments (5504) | Send Message
     
    Sequester leads to lower growth, not higher growth.
    2 Nov 2013, 09:26 AM Reply Like
  • XTigerX
    , contributor
    Comments (230) | Send Message
     
    All summer in the Twin Cities (Minnesota) traffic on the main highways was heavy with cars and loaded semi trucks. Foot traffic in the Mall of America was heavy. Plenty of building construction going on too. No surprise in that number for me.
    31 Oct 2013, 12:17 PM Reply Like
  • NUNAY the KING
    , contributor
    Comments (194) | Send Message
     
    All of those Bakken oil field people migrating to Twin cities and Chicago on off days and all of that money to spend.
    31 Oct 2013, 01:02 PM Reply Like
  • American in Paris
    , contributor
    Comments (5504) | Send Message
     
    No, it is a big surge in manufacturing, not restaurant meals.
    2 Nov 2013, 09:27 AM Reply Like
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