Treasury Closing Summary: Treasury Closing Summary: Treasury yields rebounded from lows on Thursday after a spate of U.S. economic updates helped put a floor under them following a series of dour China and Eurozone PMI releases that weighed on stocks globally. Alibaba also debuted a large $8 B multi-tranche bond offering that crowded the market before any unwinding of hedge locks. The Philly Fed index virtually doubled to 40.8, along with a 1.5% gain in home sales and 0.9% LEI jump, to help prop up Wall Street from opening lows, which followed on the heels of a drop in Markit PMI, 0.2% rise in core CPI and 2k dip in jobless claims.
U.S. Philly Fed manufacturing index surged 20.1 points to 40.8 in November U.S. Philly Fed manufacturing index surged 20.1 points to 40.8 in November after falling 1.8 points to 20.7 in October. This is the strongest print going all the way back to December 1993. The employment component bounced back to 22.4 from 12.1, and is just above the 21.2 in September. The workweek bounced back to 7.8 from -1.3. New orders more than doubled to 35.7 from 17.3. Prices paid declined to 17.3 from 27.6, with prices received falling to 11.5 from 20.8. The 6-month business conditions index rose more moderately to 57.7 from 54.5 and is down from the 66.4 in August (which was the highest since June 1992). The 6-month employment index rose to 31.5 from 28.0, with capital expenditures at 23.0 from 18.9 and prices paid at 35.5 from 32.9. The data are much stronger than expected but probably overstate the momentum in manufacturing nationally.