(Bloomberg) — Treasury yields tumbled after data showing further signs of a cooldown in the labor market reinforced speculation the Federal Reserve will be able to cut interest rates this year.
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Bonds climbed across the US curve after a report showed US job openings fell in April to the lowest level in over three years. Fed swaps price in faster pacce of 2024 rate cuts after data. Equities struggled to gain traction.
“Bottom line, the demand for labor continues to moderate,” said Peter Boockvar at the Boock Report. “Treasury yields are falling too in response. Stocks are juggling the softer data on one hand with the hopes that it triggers rate cuts sooner rather than later on the other.”
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The yield on 10-year Treasuries declined six basis points to 4.32%. The S&P 500 edged lower.
Corporate Highlights:
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Intel Corp. Chief Executive Officer Pat Gelsinger took the stage at the Computex show in Taiwan to talk about new products he expects will help turn back the tide of share losses to peers, including AI leader Nvidia Corp.
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Nvidia Corp. is still working on the certification process for Samsung Electronics Co.’s high-bandwidth memory chips, a final required step before the Korean company can begin supplying a component essential to training AI platforms.
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Airbus SE is negotiating a major sale of A330neo aircraft to China, with talks gaining momentum since President Xi Jinping visited his French counterpart Emmanuel Macron last month.
Key events this week:
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China Caixin services PMI, Wednesday
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Eurozone S&P Global Services PMI, PPI, Wednesday
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Canada rate decision, Wednesday
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US ADP Employment, S&P services PMI, ISM services, Wednesday
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Eurozone retail sales, ECB rate decision, Thursday
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US initial jobless claims, trade, Thursday
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China trade, forex reserves, Friday
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Eurozone GDP, Friday
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US unemployment rate, nonfarm payrolls, Friday
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Stocks
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The S&P 500 fell 0.2% as of 10:09 a.m. New York time
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The Nasdaq 100 fell 0.3%
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The Dow Jones Industrial Average was little changed
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The Stoxx Europe 600 fell 0.2%
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The MSCI World Index fell 0.2%
Currencies
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The Bloomberg Dollar Spot Index rose 0.1%
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The euro fell 0.3% to $1.0869
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The British pound fell 0.3% to $1.2766
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The Japanese yen rose 0.7% to 154.99 per dollar
Cryptocurrencies
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Bitcoin rose 1.2% to $69,921.51
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Ether rose 0.4% to $3,787.34
Bonds
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The yield on 10-year Treasuries declined four basis points to 4.35%
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Germany’s 10-year yield declined six basis points to 2.52%
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Britain’s 10-year yield declined five basis points to 4.17%
Commodities
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West Texas Intermediate crude fell 1.9% to $72.83 a barrel
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Spot gold fell 1.1% to $2,326 an ounce
This story was produced with the assistance of Bloomberg Automation.
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