ISM produces two PMIs.  Both of them have a strong track record of inspiring market movement with today's service sector version being the bigger deal on average.  It would be alarming, then, to know that it came in at 53.8 versus a median forecast of 50.8, and unsurprising to see 10yr yields spike a quick 5bps in response. That's exactly what happened, but that's not ALL that happened.  After about 15 minutes of selling, bonds turned around and went right back to pre-data levels, as if to say "we see this stronger economic headline, but we're not convinced that we need to be anywhere but in position for generally weaker economic data."  It will be a much more impressive trick if the bond market were able to pull off similar defiance in the face of NFP this Friday or next week's CPI, but for today, we can't object.

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