The market has seen a torrent of data out today, some of it conflicting, but the strength of the U.S. manufacturing sector has made traders sit up and take note. U.S. PPI for November rose a startling 1.8% vs. a forecast of 0.8%, making it the largest increase since August 2009. Similarly, both Capacity Utilization and Industrial Production registered greater increases than forecast as manufacturers clearly revved up production lines during November. The fly-in-the-soup was the December Empire State Manufacturing Index which came out at a dismal 2.6 vs. a forecast of 24.7. Long-term TIC Flows were also disappointing, but hardly as relevant as the other data. U.S. Treasury yields have been rising steeply today especially on the longer-maturity bonds with the ten-year yield rising around 50 basis points at the time of writing. Reportedly, the main driver is inflation concern - a concern which the PPI figure will have done nothing to abate. Still, few surprises are expected from tomorrow's FOMC statement as Bernanke is expected to keep to his dovish line despite recent strength in economic data. USD has been pushing its weight around today against the Yen and the Euro. USDJPY has been registering higher lows since the beginning of the month, and should it break above its key resistance at 90.50, the indication will be that the Yen has regained the status of leading global carry-trade currency.