Daily Market Color

Rates Steady Ahead of Jobs Report

S&P notches another record while rates steady

All three major equity indices closed higher on the first day of the new quarter. Equities reacted to positive news of initial jobless claims hitting a new pandemic low and manufacturing data that continues to show solid growth. The yield curve continued to flatten ahead of tomorrow’s release of the June jobs report. The 10y UST yield closed down 1 bps to 1.46%.

Jobless claims decrease more than expectations

Initial U.S. jobless claims dropped more than expected and hit a new pandemic low at 364,000. Currently, 19 states have ended enhanced unemployment benefits out of 26 that have announced plans to rollback assistance before their September expiration.

ISM manufacturing index slightly drops; price index increases

U.S. manufacturing activity slowed slightly in June, but still showed solid expansion at 60.6. A reading over 50 indicates growth. The ISM’s price index increased to 92.1, the highest level since 1979 as supply chain issues, commodity prices, and supply shortages adding to the pressing pressure.

The bond market will close early tomorrow at 2pm EST for the July 4th weekend.

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