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10-year Treasury Bonds Fall Ahead of Fed Minutes

Last week the NFP added 850K new jobs to the market. The better than expected figure signaled a gradual recovery in the economy. However, yesterday, 10-year US Treasury yields fell below 1.35%, the lowest since February 24.

Yesterday’s ISM services data for June was released. The figures reflected than expected drop from their all-time high in May. Following the release of these figures, the benchmark 10-year yield retreated eight points, and the 30-year yield fell to 1.971%, testing its 200-day moving average.

The latest NFP data reflects that a high percentage of the jobs added in June were in the hotel and catering sectors. These figures show that Americans are getting back to normal after the pandemic. The US treasury yields fall, a lower than expected ISM manufacturing orders figure, and the latest consumer price figures -which showed inflationary pressures-, are among the factors that the Federal Reserve (Fed) will consider when it comes to dictating US monetary policy.

Today, we’re expecting the JOLTS data due to be released alongside the FOMC Minutes, providing an overview of the US fiscal and monetary policies to be implemented in the coming months

China Restricts the Possibilities of its Own Companies

On the Asian continent, since the beginning of 2021, around 36 companies have gone public in the US, the same number as the whole of last year. Now, China is targeting all local companies that intend to list or sell their shares on a foreign stock exchange. Yesterday, China announced new measures that could make it more difficult for Asian companies to raise funds in the US.

The new measures highlight the personal quarrels between Beijing and Washington, leaving companies from both countries caught in the middle of the fray. China is alleging national security problems each time the US asks for a Chinese company’s audit outcome.. China´s obsession with security and protecting data is the main factor for these new measures, which jeopardize the Asian companies’ plans on the US stock exchange.

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