• Wall Street equities surged on April 29, with the DJI closed up by +0.38%, the S&P 500 closed up by +0.32%, and the Nasdaq closed up by +0.35%.
• US stock indexes closed moderately higher on Monday, with both the S&P 500 and Nasdaq 100 hitting 2-week highs. Optimism surrounding Q1 earnings, positive corporate news, and lower bond yields drove the markets gains. However, weakness in megacap technology stocks tempered overall market enthusiasm, offsetting some of the gains from last week's sharp rise.
• US Treasury 10-yr yields fell by -4.0 bps to 4.63%, while 2-yr yields grew by +1.0 bps to 4.97%. T-notes initially rose due to strong European bonds, but later dipped when the Treasury announced higher-than-expected net borrowing of USD243bn for 2Q24, up from the January estimate of USD202bn.
• The US April Dallas Fed Manufacturing Outlook Survey unexpectedly declined by -0.1 to -14.5, which was weaker than the expected increase to -11.2.
• The current market forecast indicates a 5.4% chance of a -25 bps rate cut at the upcoming April 30-May 1 FOMC meeting. Meanwhile, for the June 11-12 meeting, the probability stands at 11.2%, marking a notable decline from the 55.2% probability seen a month ago.
• In Europe, The Eurozone's economic confidence indicator for April unexpectedly dropped by -0.6 to 95.6, falling short of expectations for an increase to 96.7.
• Global bond yields were mixed on Monday; The German bond yield declined by -4.3 bps to 2.53%, the UK 10-yr gilt yield fell by -3.20 bps to 4.29% and the Japanese 10-yr JGB yield remained unchanged at 0.89%.
