Svmuu News: As U.S. data sent mixed signals and oil prices fell below pre-war levels, U.S. Treasury yields and the dollar declined. The year-over-year increase in the May PCE index was in line with average expectations, accelerating from 3.8% to 4.1%.
Lower energy costs are expected to temper future inflation. Durable goods orders fell 4.5% in May, compared with the consensus forecast of a 4% decline. Meanwhile, first-quarter real GDP growth was revised upward from an annualized quarterly rate of 1.6% to 2.1%, compared with the consensus forecast of 1.7%. Initial jobless claims fell to 215,000 this week, compared with the consensus estimate of 223,000. The yield on the 10-year U.S. Treasury note fell from an earlier high of 4.414% to 4.371%. The yield on the 2-year U.S. Treasury note fell from 4.162% to 4.107%. (Jin Shi)