Summary
Markets are closely watching the ISM report for signs of manufacturing growth and inflation. 10-year Treasury yields have increased by 10bp. There are many Federal Reserve speeches scheduled this week, and the market is anticipating cautious policy decisions based on the ISM report.
Key Points
1. The ISM report is a key focus for markets, leading to a rise in 10-year Treasury yields due to the return of manufacturing growth and higher inflation readings.
2. The market is anticipating caution from Federal Reserve officials regarding significant policy easing, as indicated by the numerous speeches scheduled for the week.
3. Analysts at ING highlight the importance of today’s outcome in shaping the Fed’s future decisions and the overall market sentiment towards policy adjustments.