FAST FIVE: Treasury Yields Plunge To Record Lows As US PMI Collapses Into Contraction
Treasury Yields Plunge To Record Lows As US PMI Collapses Into Contraction Markit's US Manufacturing bucked the surprising surge in ISM Manufacturing in January and preliminary February data was expected to confirm this slowing trend (with Services steadily expanding).
Flash Composite PMI 49.6 vs 53.3 And as the chart shows, while 'soft' survey data had been rising, 'hard' data – actual economic flows – has been weakening for 4 months, and February appears to have been catch-down time.
“Total new orders fell for the first time in over a decade.
Normally, such evidence of supply-side tightening is bullish-signalling accelerated activity – but respondents specifically noted that this was related to disruptions in China due to the coronavirus.
Specifically: “The 'flash' seasonally adjusted Suppliers' Delivery Times Index was at 47.0 in February.