(Bloomberg) — As hinted by the regional Fed and Markit indicators, the ISM manufacturing survey bounced hard to 52.6, substantially higher than the consensus forecast. The breakdown was certainly encouraging, with new orders printing at 56.4, the best since January of last year. Employment also improved, though the gain was more modest –from 32.1 in May to 42.1. The orders/inventories spread has basically unwound all of the the Covid decline and is now positive, which suggests an economic expansion. However, as I wondered this morning, the big question is whether this is already out of date.

Bunds one of the bigger percentage drops over the last few weeks