US S&P Global Services PMI Flash (Sep) 58.7 vs. Exp. 56 (Prev. 56.5)

The distinction that matters is S&P Global versus ISM, since the two have diverged for extended stretches in the past and rates markets have historically anchored more on the ISM when they conflict. A services print running this firm against expectations fits the recurring pattern of a two-speed economy, strength in services alongside a softer manufacturing counterpart, which in past episodes has supported the hawkish side of the policy debate by keeping attention on services-driven price pressures rather than goods disinflation. Worth noting is whether the sub-indices, particularly prices charged and employment, point the same way as the headline, since it is the prices component that has tended to transmit into rate expectations. The follow-ons are the final PMI revision and the ISM services release, which together determine whether this print re-prices anything durable.