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ISM Services: New Orders contract first time sine July 2009

  • Treasury prices get a boost after the slow ISM services report - the headline of 53 missed consensus expectations of 54.8, but New Orders tumbled 7 points into contraction territory of 49.4 after 52 consecutive months above 50.
  • "Early, severe winter weather has had a major impact on business. Both customers and employees were unable to reach the workplace," says one commenter from the Arts, Entertainment, and Recreation industry.
  • The 10-year yield is down 4 basis points at 2.96%. TLT +0.5%, TBT -1.1%.
  • Related ETFs: TBT, TLT, TMV, TBF, EDV, TTT, TMF, TLH, ZROZ, SBND, DLBS, VGLT, UBT, TLO, LBND, TYBS, TENZ, DLBL
  • Full ISM report
Comments (1)
  • New Order contraction is mostly seasonal and bad weather. Even so, the very easy money policies following the pre crsh easy money policies are wearing out. Without a crash to justify super easy money policies I don't see 2014 being a good year at all.

     

    The only temporary hope for easy money bulls right now is the budget deal and Webb preventing Fannie and Freddie from protecting taxpayers for charging anything close to a reasonable amount for the risk being put on taxpayers through a flood of underpriced mortgages to keep the real estate market afloat.

     

    In the meantime, US Treasuries slowly tick up as they lose all foreign interest in even the 10 year bond.
    7 Jan, 03:53 AM Reply Like
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