Bonds and gold down. Dollar up. Shares are also under pressure, but not much for now.
And yet, as I wrote in the previous post... the markets could not withstand the hawkish Waller, Powell, high PCE inflation, and there was a strong ISM Manufacturing and higher price pressure (the ISM Manufacturing Prices Paid sub-index was the highest since July 2022).
As a result, today we have higher yields on 10-year US bonds by about 10 bps (Figure 1), the Atlanta GDP tracker jumped to 2.82% (after PCE data on Friday and yesterday's ISM) - Figure 2.
Figure 3 shows the ISM Manufacturing and S&P Global PMI for March (both series above 50).
Figure 4 shows the ISM Manufacturing Priced Paid sub-index vs headline inflation (CPI and PCE).
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