Reported 4 months ago
The U.S. manufacturing activity gauge contracted more than expected in May, leading to a decline in Treasury yields and a weakening U.S. dollar. The Institute for Supply Management reported that manufacturing activity declined for the second consecutive month, causing yields on the benchmark 10-year Treasury bond to fall by nine basis points, with the 30-year yield also retreating. This led to a rally in the iShares 20+ Year Treasury Bond ETF. The U.S. dollar index weakened against peers as traders increased wagers on a potential September rate cut. Key highlights from the ISM Manufacturing PMI report showed decreases in the New Orders, Production, and Prices Indexes, with an increase in the Employment Index. Supplier order commitments and capital expenditures are being deferred due to a lack of demand and ongoing economic conditions.
Source: YAHOO