- The Chicago PMI slipped to 50.4 in April from 53.6 previously. Expectations had been for just a marginal decline.
- The fall was led by New Orders, which dipped to their lowest level since December. Backlogs saw a double-digit decline, and employment fell back into the contraction zone below 50.
- Production, meanwhile, posted a small rise, while supplier deliveries jumped to the strongest level since October 2014.
- Chief Economist of MNI Indicators Philip Uglow: “This was a disappointing start to the second quarter ... panelists are now more worried about the impact a rate hike might have on business than they were at the same time last year.”
- Full report here
- The 10-year U.S. Treasury yield has dipped a bit since the print, but is still higher by 2 bps on the session to 1.84%. TLT -0.35%, TBT +0.7%.
- ETFs: TBT, TLT, TMV, TBF, EDV, TMF, TTT, ZROZ, VGLT, TLH, SBND, UBT, DLBS, TLO, LBND, VUSTX, TYBS, DLBL