• Wall Street equities closed higher on July 1, with the DJIA climbed by +0.13%, the S&P 500 rose by +0.27% and the Nasdaq ended up by +0.83%.
• Stock indexes rose moderately on Monday, led by mega-cap tech stocks. Gains were limited by higher bond yields, with the 10-year T-note yield reaching a 4-week high. Concerns over economic momentum arose after declines in the June ISM manufacturing index and May construction spending.
• The 10-yr UST yields surged by +12.0 bps to 4.48%, while the 2-yr yields rose by +6.0 bps to 4.77%. Treasuries fell on Monday amid rising inflation expectations, with the 10-year breakeven rate reaching a 3.5-week high at 2.32%. Additionally, speculation about a potential Trump victory leading to steeper yield curves.
• The US June ISM manufacturing index fell to a four-month low of 48.5, below the expected 49.1, marking the third consecutive month of contractions. The ISM price paid sub-index also dropped to a six-month low of 52.1, missing the forecast of 55.9.
• The US construction spending for May 2024 unexpectedly declined. The seasonally adjusted annual rate fell by -0.1% MoM, missing the expectations of a 0.2% increase.
• In Euro, the S&P Manufacturing PMI for the Eurozone in June 2024 was revised up to 45.8 from 45.6, but remains below 50, indicating continued contraction.
Global bond yields moved higher on Friday: the 10-yr German bund yield surged by +10.7 bps to 2.60%, the 10-yr UK gilt yield grew by +4.2 bps to 4.17%, and the Japanese 10-yr JGB yield closed up by +0.4 bps to 1.06%.
