- The Chicago PMI unexpectedly slipped to 49.3 in May, its lowest level since February, and the sixth time in the last 12 months its been in contraction zone.
- The May decline was led by a 6.6 point fall in Production, and a more mild setback in New Orders - with both subindexes slipping below 50.
- Turning to consumer confidence, it fell in May to 92.6 from 94.7 in April, confounding expectations for a sizable increase.
- Nevertheless, the hawks are in charge now at the FOMC, and the 10-year Treasury yield remains higher on the session by three basis points to 1.88%. TLT -0.5%, TBT +1%
- ETFs: TBT, TLT, TMV, TBF, EDV, TMF, TTT, ZROZ, VGLT, TLH, SBND, UBT, DLBS, TLO, LBND, VUSTX, TYBS, DLBL