2024-07-25 05:15:00 ET
Summary
- US manufacturing PMI slipped back below 50 and new home sales weakened, although the services PMI did manage to edge higher and is indicating a mild expansion.
- We continue to view the environment as prone to more risk-off, higher volatility and lower market rates. The macro data is pointing in that direction, as are US politics.
- Weaker eurozone PMIs have helped markets price in two more ECB rate cuts for 2024, helping the 2s10s steeper by 5bp.
By Padhraic Garvey, CFA , Benjamin Schroeder , and Michiel Tukker
US 5yr auction was not great, but underlying impulses still point to downward pressure on market rates ...
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Rates Spark: Weak PMIs Help Build The Case For Rate Cuts