Production Index declined from 0.7 in June to -1.3 in July, while New Orders Index decreased from -1.3 to -12.8.
Treasury yields continued to rebound from session lows as traders reacted to the report. The yield of 2-year Treasuries settled near the 4.40% level, while the yield of 10-year Treasuries moved towards the 4.18% level.
U.S. Dollar Index tested session highs after the release of the weaker-than-expected Dallas Fed Manufacturing Index report. Traders prepare for the Fed Interest Rate Decision, which will be released on Wednesday. From the technical point of view, U.S. Dollar Index managed to climb above the resistance at 104.40 – 104.60 and is trying to settle above the 104.75 level.
