Risk trades have stumbled and the US dollar rallied after US 10-year yields touched 4% in the aftermath of the ISM manufacturing survey. It came after the prices paid component of the survey surprised with a rise to 51.3 compared to 45.1 expected and well-above the 44.5 prior.
The numbers indicate that input costs of manufactured goods rose, despite falling oil and natural gas prices in the month.
10s hit a high of 4.002% but have since retraced slightly to 3.982%, still up 6.9 bps on the day. It's the first touch of 4% since the soft October CPI data that was released Nov 10.
US 10 year yield daily
