ISM Prices Paid = Bond Fade

Yes it's just one print, but in Narrative space these things matter.

I put this on chat earlier, but in the interests of time and given the short term nature of the event, I didn’t want to wait until the next weekly “ICYMI” and thought I would bang this out.

Gang - in the interest of getting this out, I will explain shortly but these ISM Services prints (especially the prices paid miss) are intensely bearish for the long bond. This gap down reaction in yields is a giant fade. I cannot say this more strongly. Be back with why in a bit.

Source: Bloomberg

Think about it this way: