PMI And The Yield Curve Correlation
The article discusses the correlation between the Manufacturing PMI and the yield curve, specifically the 10-year minus 3-month Treasury. Both indicators peaked in late 2021 and remained negative for nearly three years until December 2025, when they began to show positive signals. This correlation suggests a relationship between manufacturing activity and investor sentiment in the economy.
- ▪The Manufacturing PMI and the yield curve have shown a significant correlation.
- ▪Both indicators peaked in late 2021 and remained negative until December 2025.
- ▪Since December 2025, both the yield curve and manufacturing have indicated positive economic signals.
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