• Wall Street retreated on July 23, with the DJIA slid by -0.14%, the S&P 500 fell by -0.16% and the Nasdaq edged down by -0.06%.
• US stocks traded quietly on Tuesday as investors remained cautious ahead of tech earnings reports. The 10-year Treasury yield dipped slightly, possibly due to recent weak US economic data. Markets are awaiting Friday’s PCE deflator report for clues on when inflation might fall sufficiently to prompt the Fed to consider a rate cut.
• The 10-yr UST yields decreased by -1.0 bps to 4.25%, with the 2-yr yields remained unchanged at 4.50%. T-note prices were benefited from weaker-than-expected US economic reports and a -1.5 bps decline in the 10-year breakeven inflation expectations rate to 2.27%.
• June's US existing home sales fell by -5.4% MoM to 3.89 million units, missing the expected -3.2% MoM decline to 3.89 million units. This marks the lowest sales level of the year, as high mortgage rates and elevated home prices continue to pressure the market.
• The Euro Area's consumer confidence climbed by 1.0 points to -13 in July 2024, up from -14 in June, reaching its highest level since February 2022 and exceeding the anticipated -13.4, based on initial estimates.
• In Asia, the finance ministry of India reduced the fiscal deficit target to 4.9% for the year ending March 2025, a revision from the 5.1% target announced in February’s pre-election interim budget.
• Global bond yields were mixed on Tuesday: the 10-yr German bund yield fell by -5.7 bps to 2.44%, the 10-yr UK gilt yield dropped by -3.7 bps to 4.12%, and the Japanese 10-yr JGB yield inched up by +1.1 bps to 1.06%.
