• Wall Street equities closed with gains on May 21, with the DJI rose by +0.17%, the S&P 500 surged by +0.25%, and the Nasdaq closed up by +0.22%.
• Tuesday saw US stocks close moderately higher, just below the all-time highs set last week. Gains were capped by comments from Fed’s Waller and Fed’s Bostic, who emphasized waiting for inflation to decrease before reducing interest rates. Lower T-note yields on Tuesday provided a boost to equities.
• The 10-yr UST yields declined by -3.0 bps to 4.41%, while the 2-yr yields were unchanged at 4.82%. Treasury yields retreated as investors evaluated inflation, while multiple Fed officials reiterated their caution about inflation and its potential return to the central bank’s 2% target range.
• In Euro, The Eurozone posted a trade surplus of EUR24.1bn in March 2024, exceeding the EUR19.1bn surplus recorded in the same month the previous year and surpassing market forecasts of EUR19.9bn. This marked the largest trade surplus since December 2020.
• In Asia, Japan's trade deficit for April 2024 increased to JPY462.5bn, compared to JPY429.8bn in the same period the previous year, and higher than the market forecast of a JPY339.5bn deficit.
• Global bond yields moved lower on Tuesday, the German bund yield declined by -1.9 bps to 2.51%, while the 10-yr UK gilts yield slid by -1.8 bps to 4.15%. The Japanese 10-yr JGB yield edged down by -0.10 bps to 0.98%.
