EmailBond Market Update
The market at 10:10 ET
| 10-Year: -21/32....%.... GNMAs: .... USD/JPY: 79.58.... EUR/USD: 1.2678 |
Moving the Market
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Personal Income (8:30): Actual 0.2%, Briefing 0.0%, consensus 0.1%, prior 0.2% (no revision) Personal Spending (8:30): Actual 0.0%, Briefing 0.1%, consensus 0.1%, prior 0.1% (revised from 0.3%) PCE Prices - Core (8:30): Actual 0.1%, Briefing 0.2%, consensus 0.2%, prior 0.1% (no revision) Chicago PMI (9:45): Actual 52.9, Briefing 52.0, consensus 53.0, prior 52.7 (no revision) Michigan Sentiment - Final (9:55): Actual 73.2, Briefing 73.0, consensus 74.1, prior 74.1 |
Latest Data Response
29-Jun-12 10:10 ET
10-Yr: -21/32..1.66%..
USD/JPY: 79.58..
EUR/USD: 1.2678
Data Reaction: The Chicago PMI report for June came in close to expectations, with a headline reading of 52.9 versus the Briefing.com consensus estimate of 53.0. The June number was up from 52.7 in May. Despite the slight uptick, which is indicative of faster expansion, the back end of the curve saw some modet buying interest as the breakdown of the survey did not exactly live up to the hopeful nature of the headline number. The boost was driven by the Production Index, which jumped to 57.0 in June from 50.0 in May; however, the decline in the Orders Backlog Index from 46.3 in May to 42.2 in June suggests manufacturers were staying busy filling past orders. In fact, the New Orders Index dropped from 52.9 in May to 51.9 in June. New orders remain in expansion mode, yet June marked a deceleration in new orders for the fourth consecutive month. Strikingly, the Employment Index picked up from 57.0 in May to 60.4 in June, which could be interpreted as a sign that manufacturers think the slowdown in orders growth is only temporary.Separately, the final reading for the University of Michigan Consumer Sentiment report for June was revised down from 74.1 to 73.2. Both the Expectations and Present Conditions Indexes saw slight downward revisions as well. Presumably, the softening labor market and the headline volatility regarding the eurozone debt crisis were drags on consumer sentiment that offset the benefit of lower gas prices.
The data dump is done now, so the market will be left to trade on its own. To that end, the action continues to be dictated by the EU SUmmit headlines and the bullish response (so far anyway) by the equity market.
