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Chicago PMI Takes Wind Out Of Paring Of Gains Into Its Release

US TSYS
  • A softer than expected MNI Chicago PMI -- 41.5 (cons 43.8) after 40.4 -- has taken the wind out of the prior paring of gains on the earlier softer than expected personal spending and moderation in supercore PCE inflation.
  • The net result is 2s have retraced 2/3 of the rally on the PCE data and are now +2.5bp on the day, +1bp for 10s.

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