Discussion
Rates were ripping pre-market before weak manufacturing PMI data reversed the move. Now 90 minutes into equity trading rates are green again.
XLU and XLP are solidly outperforming on the day, continuing the nascent strength observed mid-day Friday. Though XLV is very weak.
Most notably HY CDX is solidly green despite higher rates and good performance from RSP and cyclicals.
Lastly, 10Y break-evens are perking up a bit. Something to watch.
Weird day.