On Friday, Treasury yields remained relatively steady as investors analyzed the latest U.S. economic data to gauge potential rate cuts by the Federal Reserve. The 10-year Treasury yield increased by 1 basis point to 4.267%, while the 2-year Treasury note yield also rose by 1 basis point to 4.739%. It is important to note that yields and prices move in opposite directions, and one basis point equals 0.01%.
S&P Global’s “flash” reports from Friday indicated that the U.S. services sector experienced its highest level of activity in over two years this month, with a PMI of 55.1. The manufacturing sector also showed signs of improvement, further boosting optimism about the economy’s prospects. However, data released on Thursday showed an increase in initial jobless claims compared to the previous week and housing starts for the month of May fell more than anticipated, casting a shadow over real estate investors’ confidence.
Initial claims for unemployment benefits decreased by 5,000 to 238,000 for the week ending on June 15th, slightly above economists’ expectations but still indicating a strong labor market environment. Housing starts dropped by 5.5% to a seasonally adjusted annual rate of 1
