Rates Slide for a Second Consecutive Day

Rates and equities continue their decline for a second day. Equities closed in the red across the board – the S&P 500 fell 0.6%, a day after it suffered the biggest single day performance since June 2020. An uptick in weekly jobless claims and a steep decline in the Philly Fed manufacturing index helped drag Treasury yields 1-7 bps lower across the curve – the 10-year closed 2 bps lower at 2.84%.

Existing home sales decline 2.4% in April. Sales decreased to 5.61 million from 5.75 million the month prior, falling for a third consecutive month. The figure came in below the expected 5.64 million, as higher home prices and mortgage rates likely weighed on home buyers. The median listing price hit an all-time high of $391k , up 14.8% from April of last year. Despite the price pressures, housing demand remains robust, with the average listing remaining on the market for only 17 days.