After rising for two days and enjoying a burning-hot August, the bond market is undergoing a pullback today, thanks in part to a better-than-expected manufacturing report from the Institute for Supply Management and rosy numbers out of China’s manufacturing sector. Contrary to Wall Street superstition, the stock market is enjoying a nice rally on its first September outing.
The August ISM manufacturing index came in at 56.3, up from 55.5 in July, registering its 13th straight month of growth. Anything above 50 is a signal that the manufacturing sector is growing.
The benchmark 10-year Treasury note was lately down 1 0/32 and yielding 2.59 percent. The 2-year was down 2/32 to yield 0.50 percent.