- The headline PMI fell to 49.4 in August versus July's 52.6 and expectations for just a small drop to 52.2. New Orders led the unexpected decline, dropping a full 7.8 points to 49.1.
- Production dipped 5.8 points to 49.6 and Supplier Deliveries edged lower to 50.9. Backlogs fell 2.5 points to 45.5, and Prices dropped 2 points to 53.0.
- Treasury yields are mostly ignoring the news, with the 10-year yield still higher by 1.6 basis points to 1.598%. Short-term rate markets are also brushing the data aside, continuing to predict a slight chance of a September rate hike and about a 60% chance of a move sometime before year-end.
- Full report
- TLT -0.25%, TBT +0.5%
- ETFs: TBT, TLT, TMV, TBF, EDV, TMF, TTT, ZROZ, VGLT, TLH, SBND, UBT, DLBS, TLO, LBND, VUSTX, TYBS, DLBL