Manufacturing report reverses impact of monthly employment report
Friday may have started with an employment report indicating an increase in the unemployment rate from 3.5% to 3.8%, and Treasury yields dropping about 5 basis points, but that wasn’t the end of the story.
Later that day, the ISM Manufacturing PMI for August showed a little more strength than had been expected, up to 47.6 in August from 46.4 in July. Even though any number below 50 indicates an outlook for contraction in manufacturing, that increase was sufficient to cause Treasury yields to reverse course.
State of the market
The Dow traded down 42 points this morning. Treasury yields were a few basis points higher than at the close of business on Friday.
Tuesday, Sept. 5
Wednesday, Sept. 6
Trade Balance Report
ISM Services PMI
The Federal Reserve releases its Beige Book, a look at the state of the economy in each of the Fed’s 12 districts.
Thursday, Sept. 7
Nonfarm Productivity/Unit Labor Costs
Weekly Initial Jobless Claims
Friday, Sept. 8
There are no auctions of Treasury notes or bonds this week.
By Mike Kraft, Executive Director and Commercial Real Estate Treasurer for Commercial Banking
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