• Wall Street equities closed near flat on June 27, with the DJIA rose by +0.09%, the S&P 500 rose by +0.09% and the Nasdaq rose by +0.30%.
• Stock indexes rebounded on Thursday, which closed modestly higher. Weaker-than-expected US economic reports lowered bond yields and provided support for stocks, while Fed’s Bostic's comments about balanced risks and a potential rate cut in Q4 also supported stocks.
• The 10-yr UST yields fell by -3.0 bps to 4.29%, while the 2-yr yields eased by +1.0 bps to 4.70%. The USD44bn Treasury auction of 7-year T-notes on Thursday saw robust demand, achieving a bid-to-cover ratio of 2.58, higher than the 10-auction average of 2.54, which led to a decline in bond yields across tenors.
• US initial unemployment claims fell by -6,000 to 233,000, beating expectations of 235,000. Conversely, continuing claims rose by +18,000 to 1.839 million, a 2.5-year high, indicating weaker labor market conditions.
• US Q1 GDP was revised up to +1.4% from +1.3%, meeting expectations. Meanwhile, the Q1 core PCE price index increased to 3.7% from 3.6%, underscoring persistent inflationary pressures.
• The Eurozone June economic confidence index dipped to 95.9 in June 2024 from a slightly better-than-expected 96.1 in May, falling short of the anticipated 96.2. This decline highlights growing uncertainties and challenges in the region's economic outlook.
• Global bond yields were mixed on Thursday: the 10-yr German bund yield fell by -0.4 bps to 2.44%, the 10-yr UK gilt yield slid by -0.2 bps to 4.13%, and the Japanese 10-yr JGB yield closed up by +4.6 bps to 1.08%.
