Positive news from on the non-manufacturing sector was not enough to rescue stocks this morning. The ISM non-manufacturing index rose to 53.3 in August, up from 52.7 in July and higher than the forecast drop to 51.0. The one sour note in the report was the drop in the employment index, which is consistent with the overall job situation in the U.S.
This report follow Friday’s dismal employment report and comes just two days prior to President Obama’s Thursday night jobs speech. Following this data U.S. stocks are down sharply in a broad sell-off. Treasury bonds are rallying, mostly on the long end with the price of the 30 year bond higher by over 1.00%, but the 10 year note is higher by only a few basis points, pushing the yield down to 1.96%.
This week marks another round of U.S. debt auctions beginning today with $32 billion of 3 year notes, followed Wednesday with $21 billion 10 year notes, and Thursday with $13 billion of 30 year bonds.
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