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%.