10Y Yield Extends Rise After Surge In ISM Manufacturing Prices

US manufacturing experienced a downturn in February following a strong January rebound. The S&P Global Manufacturing PMI decreased to 51.6, reflecting the weakest expansion since July. The ISM Manufacturing PMI also declined slightly, but remained above expectations at 52.4. Hard data indicators suggest a slowing economic growth rate in manufacturing. S&P Global reported declining input and output prices, contrasting with ISM's reported price increases. New orders declined according to both surveys, potentially impacting production and employment. Rising oil prices and the ISM's price surge negatively affected bond yields. Extreme weather disrupted businesses, potentially masking underlying economic strength. Manufacturers expressed optimism about future prospects, anticipating a potential rebound. However, political and tariff uncertainties continue to weigh on confidence and investment.