U.S. Treasuries moved sharply higher early Friday on weaker-than-expected March Chicago Purchasing Manager numbers, reflecting continued weakness in the manufacturing sector. U.S. March Chicago PMI came in at 35.0 vs 43.2 in February. The "prices paid" component fell to 59.6 from 64.9. The data was very positive for the treasury market, sending the entire yield curve bullishly steeper. Cash treasuries hit new session highs and the pit traded in fast market conditions as a flood of buy orders entered and locals scrambled to cover shorts. Elsewhere, the University of Michigan consumer sentiment numbers came out early, rising to 91.5 in March vs 90.6 in February and 91.8 in the preliminary March report. The numbers imply that consumers were more upbeat about the economy than expected. This did not bode well for treasuries, which trended lower at the release. But the radically different read from Chicago PMI spelled out a quick turnaround for the treasury market.