Market Analysis

The bond markets are under pressure this morning in response to a stronger than expected January Institute of Supply Management (ISM) manufacturing report that also showed much stronger inflation pressures at the supplier level.

The January ISM Manufacturing index came in at 60.8 vs expectations for a 57.6 reading and a 57.0 reading in December.  The Prices Paid index came in at 81.5 vs expectations for a 73.9 reading and a 72.5 reading in January. In separate news, Construction Spending for December was down 2.5% vs expectations for a .2% increase.