Treasurys take Chicago PMI plunge in stride

|By:, SA News Editor

The 10 point decline to 52.6 in July was led by a "collapse" in the production and ordering components, say the report authors, leaving the production gauge barely in expansion territory. New orders - the most highly weighted component of the headline index - saw its largest decline since November. Backlogs fell into contraction territory.

The surprise fall calls into question the sustainability of the recovery, says MNI Indicators' Philip Uglow.

Full report

The response of the Treasury market suggests it believes the slow report is a one-hit wonder. The 10-year yield remains higher by three basis points at 2.59%. TLT -0.6%, TBT +1.2%

ETFs: TBT, TLT, TMV, IEF, TBF, PST, EDV, TMF, TTT, ZROZ, SBND, TLH, IEI, DTYS, TYO, DLBS, VGLT, UBT, UST, VGIT, TLO, TBX, GSY, SCHR, TENZ, DTYL, ITE, LBND, TYD, TYBS, TBZ, DLBL, FIVZ, DFVL, DFVS, TYNS