Free Trial
US TSY FUTURES

BLOCK, Large 5Y Sale

US TSY FUTURES

BLOCK, 10Y Buy

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Notable Beat For ISM Services With Increases In Activity And Orders

US DATA
  • ISM Services came in notably stronger than expected in July, rising from 55.3 to 56.7 (cons 53.5) and contradicting the slide seen in the US PMI to 47.3 which in turn had marked the weakest growth outside of lockdown months since the GFC.
  • The prices index decreased for the third consecutive month, falling 7.8pts to 72.3%, but “availability issues with overland trucking, a restricted labor pool, various material shortages and inflation continue to be impediments for the services sector”.
  • In further signs of bottlenecks hindering supply, “services businesses continue to struggle to replenish inventories, as the Inventories Index contracted for the second consecutive month”.
  • The release sparked an aggressive further sell-off in Tsys, with the front-end jumping 5bps on the snap election, continuing on to a 12bp increase to a peak 3.20% before trimming the surge to 3.16% currently, huge moves after yesterday’s overnight low of 2.815%. Similarly, Fed Funds futures currently price a 64bp hike at the Sept FOMC, pushing above a 50/50 chance of a 75bp hike for the first time since last week's FOMC.
175 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • ISM Services came in notably stronger than expected in July, rising from 55.3 to 56.7 (cons 53.5) and contradicting the slide seen in the US PMI to 47.3 which in turn had marked the weakest growth outside of lockdown months since the GFC.
  • The prices index decreased for the third consecutive month, falling 7.8pts to 72.3%, but “availability issues with overland trucking, a restricted labor pool, various material shortages and inflation continue to be impediments for the services sector”.
  • In further signs of bottlenecks hindering supply, “services businesses continue to struggle to replenish inventories, as the Inventories Index contracted for the second consecutive month”.
  • The release sparked an aggressive further sell-off in Tsys, with the front-end jumping 5bps on the snap election, continuing on to a 12bp increase to a peak 3.20% before trimming the surge to 3.16% currently, huge moves after yesterday’s overnight low of 2.815%. Similarly, Fed Funds futures currently price a 64bp hike at the Sept FOMC, pushing above a 50/50 chance of a 75bp hike for the first time since last week's FOMC.