Treasury Yields Extend Declines after ISM Data Provides Signs of Waning U.S. Growth
Treasury yields extended declines seen earlier on Wednesday, July 3, after the Institute for Supply Management’s index of services businesses produced its lowest reading since the height of the pandemic in May 2020.
Treasury yields extended declines seen earlier on Wednesday, July 3, after the Institute for Supply Management’s index of services businesses produced its lowest reading since the height of the pandemic in May 2020.
In data released on Wednesday, service-oriented companies such as restaurants and retailers contracted in June for the second time in three months in another sign that U.S. growth is waning. The ISM’s index of service businesses sank to 48.8% last month from 53.8%, indicating sector contraction for the third time in 49 months.
Economic activity in the U.S. services sector contracted in June for the second time in the last three months, said the nation's purchasing and supply executives in the latest Services ISM® Report On Business®. The Prices Index registered 56.3% in June, a 1.8-percentage point decrease from May's reading of 58.1%. The Inventories Index contracted in June, registering 42.9%, a decrease of 9.2 percentage points from May's figure of 52.1%. The Inventory Sentiment Index (64.1%, up 6.4 percentage points from May's reading of 57.7%) expanded for the 14th consecutive month. The Backlog of Orders Index contracted in June for the first time since March, registering 44%, a 6.8-percentage point decrease compared to the May reading of 50.8%.
No Rate Cuts Yet: Fed Maintains Interest Rate Unchanged at Historic Highs
The U.S. Federal Reserve has opted to maintain the federal funds rate target range at 5.25—5.5%, according to the latest report from the Federal Open Market Committee (FOMC).
China’s Third Plenum Vows Support for Private Sector, Stable Climate for Foreign Firms
Better protection for private sector rights was among hundreds of reform goals laid out by China’s ruling Communist Party following a key, long-awaited policy meeting.
Cocoa, Robusta Coffee, Copper and Many More Commodities Reflect Rising Inflation Fears Amidst Talks of the Expected Fed’s Rate Cuts
Even though U.S. stock market valuations went through the roof, AI monetization remains iffy, and the upcoming presidential elections bring a lot of uncertainty, making it prudent to downsize equities portfolios, one thing will keep making our investments profitable for the coming months.
