The latest U.S. economic data has hinted at the possibility of interest rate cuts by the Federal Reserve, as traders closely watched the yields on Treasury bonds. The 10-year Treasury yield rose slightly to 4.267%, while the 2-year Treasury note yield also increased to 4.739%. It is important to note that yields and prices move in opposite directions, with one basis point equal to 0.01%.
Recent reports from S&P Global showed positive growth in the U.S. services sector, reaching its highest level in over two years with a PMI of 55.1. Manufacturing also improved in the latest figures. However, initial jobless claims data showed a slight increase from the previous week, and housing starts fell more than expected in the last month.
The number of new claims for unemployment benefits dropped by 5,000 to 238,000 for the week ending on June 15, slightly above economists’ expectations. Additionally, housing starts decreased by 5.5% to a seasonally adjusted annual rate of 1.277 million units in May, according to the Commerce Department’s Census Bureau. The worse-than-expected Philadelphia Fed Manufacturing Index reading further contributed to concerns about a slowing economy, prompting investors to closely monitor the shifting economic landscape.
The latest U.S economic data has given traders insights into potential interest rate cuts by the Federal Reserve as they closely watch yields on Treasury bonds such as the 10-year Treasury yield which rose slightly to 4.267%, and the
