• Wall Street equities closed with modest gains on June 26, with the DJIA edged up by +0.04%, the S&P 500 rose by +0.16% and the Nasdaq closed up by +0.49%.
• Stock indexes edged higher on Wednesday. FedEx jumped over 15% after surpassing Q4 adjusted EPS expectations and providing a strong 2025 adjusted EPS forecast. Amazon.com also gained over 3% following the announcement of a new online storefront for budget-friendly apparel and home goods.
• The 10-yr UST yields surged by +9.0 bps to 4.32%, while the 2-yr yields advanced by +6.0 bps to 4.71%. Bond yields climbed Wednesday following tepid demand for the Treasury’s USD70bn auction of 5-year T-notes, which had a bid-to-cover ratio of 2.35, falling short of the 10-auction average of 2.42.
• In May, US new home sales plunged -11.3% MoM to a six-month low of 619,000 units, below expectations of 633,000, suggesting potential concerns about a housing market slowdown.
• US mortgage applications saw a slight increase +0.8% last week, driven by a 1.2% rise in purchase applications. Refinancing activity dipped slightly -0.1%. Meanwhile, the average 30-year fixed rate remained unchanged at 6.93%.
• In Euro, the German GfK Consumer Climate Indicator fell to -21.8, missing expectations of -18.9. This marks the first decline in five months and comes despite a slight upward revision to -21.0 for the previous month.
• In Asia, the Japanese yen continued its downward spiral on Wednesday, weakening -0.4% to 160.35. The yen has already fallen over 12% this year, prompting the government to spend an estimated JPY9.8tn in a recent intervention attempt.
• Global bond yields moved higher on Wednesday: the 10-yr German bund yield rose by +4.1 bps to 2.45%, the 10-yr UK gilt yield surged by +5.3 bps to 4.13%, and the Japanese 10-yr JGB yield increased by +2.6 bps to 1.03%.
