Daily Market Color June 26, 2023Rates Grind Lower Ahead of Data Slate Rates fall in risk-off session. Swap rates and Treasury yields generally fell today, the 2-year UST yield staying flat at 4.74% and the 10-year yield falling slightly to 3.72%. Futures continue to be unconvinced that the Fed will hike multiple times within the year, with only one hike priced in at the peak (November). Meanwhile, equities continued their descent, the S&P 500 falling 0.45% while the NASDAQ Composite declined 1.16%. Previewing tomorrow’s data. Tomorrow’s data will shed further light on industrial activity, with durable goods orders and Richmond Fed manufacturing on the schedule. Durable goods orders are expected to come in at -0.8%, a steep decrease from last month’s 1.1%. The decrease would fit the tone set by last week’s weak PMI data, which showed a contraction in manufacturing activity. Richmond Fed manufacturing is expected to increase slightly to -12 from -15 last month. Day ahead. Durable goods orders will lead the session at 8:30 AM ahead of new home sales and manufacturing figures at 10 AM. Consumer confidence data will also be released at 10 AM.
