3rd June 2021 Morning Report

Thursday 3rd June 2021

Treasury yields were modestly lower on Wednesday, trading in a tight range as investors awaited the data of private payrolls data on Thursday and the monthly federal jobs report on Friday. The Benchmark 10 - year Treasury yield was down to 1.594%.

The two-year treasury yield, a barometer for investor expectations about interest rate hikes, has remained flat at 0.147%.

While economic data has shown signs that reopening is driving growth, the labour market recovery has been slower than expected. In the Fed’s most recent review of economic conditions, it said U.S. economic recovery accelerated in recent weeks, despite a long list of supply chain troubles, hiring difficulties and as rising prices spread through the country. The Fed has said that it will keep monetary policy loose until maximum employment has been achieved.

The US Federal Reserve has announced it will soon begin selling off the corporate bonds and exchange-traded funds it amassed last year. This will be done over the remainder of this year.

Morning Report 3 June 2021

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