What a day! The bond market is getting crushed and the dollar is falling off a cliff thanks to strong global economic data. The CLSA China Purchasing Managers’ Index got things going overnight when it rose to 52.8 in July from 51.8 in June. That’s the highest reading in a year. Then a few minutes ago, the U.S. ISM Manufacturing Index jumped to 48.9 in July from 44.8 in June. That topped expectations for a reading of 46.5. Construction spending was also better than forecast — UP 0.3% against a DOWN 0.5% forecast.
As I write, the long bond futures are off 1 4/32. The yield on the 10-year Treasury Note is up 13 basis points to 3.61%. The Dollar Index is down 52 basis points, taking out key technical support that dates back to early June.
