Yields have moved sharply lower after the weaker than expected ISM services data. Prices paid lowest since May 2020.

  • Two year yield 3.687% -14.7 basis points
  • 10 year 3.279% -5.4 basis points
  • 30 year 3.563% -3.1 basis points

The 10 yield has moved to a new low for the year and trading at the lowest level since September 2022

US stocks are marginally lower from pre-release data so far:

  • Dow Industrial Average still up by 60 points or 0.21%
  • S&P index is down -9.2 points are -0.23%
  • NASDAQ index is down -85 points or -0.70%

The markets are pricing in 100 basis point of cuts between now and January 2024. Meanwhile Fed's Mester said last night that the Fed is looking at inflation, demand decline but she still expects to move at rates above 5% and keep them there for a long while. There is a big difference between the Fed and the market.