• Wall Street equities saw varied performance on May 1, with the DJI rose by +0.23%, the S&P 500 slipped by -0.34%, and the Nasdaq closed down by -0.33%.
• US stocks closed with a mixed bag on Wednesday amid concerns over prolonged higher interest rates and signals of a robust labor market. Additionally, the unexpected rise in the April ISM prices paid sub-index to 60.9, compared to the expected decline to 55.4, underscores persistent inflationary pressures, further shaping market sentiments.
• US Treasury 10-yr yields fell by -6.0 bps to 4.63%, while 2-yr yields dipped by -8.0 bps to 4.96%. Treasuries rallied due to weaker-than-expected US economic data, including March's JOLTS job openings and April's ISM manufacturing index.
• The FOMC, as expected, kept its benchmark interest rate unchanged at 5.25%-5.50%, the highest level in 23 years, during its recent two-day policy meeting, citing ongoing challenges in reaching its 2% inflation target.
• In the week ending April 26, US MBA mortgage applications fell by -2.3%, with both purchase and refinancing sub-indexes dropping. The average 30-yr fixed-rate mortgage increased to 7.29% from 7.24% in the prior week.
• In April, US ADP employment change exceeded expectations at +192,000, with March revised upward to +208,000. However, March's JOLTS job openings fell to a 3-year low of 8.48mn, below expectations.
• In Asia, China's manufacturing PMI in April edged up slightly to 50.4, surpassing the anticipated 50.3. However, the non-manufacturing PMI dipped to 51.2, falling short of the expected 52.3.
• Global bond yields were mixed on Wednesday; The German bund did not trade Wednesday due to Labor Day holiday, while the UK 10-yr gilt yield grew by +1.90 bps to 4.37% and the Japanese 10-yr JGB yield fell by -1.20 bps to 0.89%.
