ISM just released the results of its October non-manufacturing survey, and Treasuries and gold are taking a hit in the wake of the release.
The ISM report suggested an unexpected acceleration in the pace of growth in the American services sector in October.
10-year Treasury futures are down 0.4%, trading at their lows of the day, while the yield on the 10-year note is trading at 2.66%, 6 basis points higher from yesterday’s close.
Gold is trading down 0.6% at $US1307 an ounce, while WTI crude oil futures are trading around $US93.70 a barrel, down 1.0%.
The S&P 500 is down 0.5%, trading at 1759.
Stock markets across Europe are trending lower. The Italian FTSE MIB is down 1.3% and the Spanish IBEX 35 is down 1.2%, while the French CAC 40 is down 1.1% and the London FTSE 100 and German DAX are both down 0.7%.
Yields on 10-year government debt in France, Germany, and Italy are all about 6 basis points higher today, while Spanish 10-year yields are up 9 basis points.
The employment sub-index of the ISM report jumped to 56.2 from September’s 52.7 reading, suggesting an acceleration in the pace of hiring as well.
“The non-manufacturing ISM will provide one last forecast input for payrolls,” say Deutsche Bank economists Brett Ryan and Carl Riccadonna.