Morning View
The compression of US Treasury bond yields continues
International
Following Tuesday's inflation data, US Treasury bond yields continued to fall yesterday. Implicitly, interest rate futures trading is pricing in two rate cuts by the Federal Reserve in December this year, with the first cut expected at the next meeting in September.
As a result, US Treasury bond yields compressed across the board. The 1-year bond closed at +3.85%, down from 3.89% previously, while the 3-year bond closed at 3.64%, also down from 3.70% previously. The 10-year yield closed at 4.23%, down from Tuesday's yield of 4.28%.
Meanwhile, the main US stock indices gained ground yesterday. The S&P 500 advanced +0.3%, while the Nasdaq advanced +0.1%. The Dow Jones saw the biggest change, rising +1%. So far in 2025, the indices have accumulated changes of +9.9%, +12.4% and +5.6%, respectively.
Fuente: PUENTE Hnos, Bloomberg
US stock indices continue to rise after inflation data
International
This morning, the United States released its inflation data for July. Most analysts interpreted it favourably, noting in particular that there was no acceleration in the goods sector, a segment that could be affected by the tariffs implemented by the government. Although core inflation exceeded expectations, this deviation was mainly attributed to an increase in prices in the services sector.
In this context, the main US stock indices closed higher. The Nasdaq led the way with a +1.4% rise on the day, followed by the S&P 500 and the Dow Jones, which advanced +1.1% each. So far this year, the indices have accumulated gains of +12.3%, +9.6% and +4.5%, respectively.
Meanwhile, US Treasury bond yields fell. The 1-year bond closed at +3.89%, down from 3.93% previously, while the 3-year bond closed at 3.70%, also down from 3.73% on Monday. The 10-year bond yield closed unchanged at 4.28%.
Fuente: PUENTE Hnos, Bloomberg
