• Wall Street equities finished lower on June 28, with the DJIA fell by -0.12%, the S&P 500 eased by -0.41% and the Nasdaq closed down by -0.71%.
• Stock indexes ended moderately lower on Friday, with the S&P 500 and Nasdaq pulling back from all-time highs. Stronger-than-expected June MNI Chicago PMI and consumer sentiment reports drove the 10-year T-note yield to a two-week high, weighing on stocks.
• The 10-yr UST yields rose by +7.0 bps to 4.36%, while the 2-yr yields increased by +1.0 bps to 4.71%. T-notes reversed early gains and declined after the May core PCE index rose at its slowest pace in over three years, increasing expectations for Fed rate cuts this year.
• In May, US personal spending increased by +0.2% MoM, which was below the expected +0.3%. Meanwhile, personal income rose by +0.5% MoM, exceeding the forecast of +0.4%.
• The US core PCE price index for May eased to +2.6% YoY from +2.8% in April, aligning with expectations and marking the slowest increase in three years.
• In Asia, China’s NBS Manufacturing PMI remained steady at 49.5 in June, marking the fourth contraction this year. Meanwhile, the Non-Manufacturing PMI declined to 50.5 from 51.1 in May, below market expectations of 51.0.
• Global bond yields were mixed on Friday: the 10-yr German bund yield rose by +5.2 bps to 2.50%, the 10-yr UK gilt yield grew by +4.2 bps to 4.17%, and the Japanese 10-yr JGB yield closed down by -1.9 bps to 1.06%.
