Morning View

In the US, May Purchasing Managers' Indices (PMI's) beat expectations.

International

In the US, the preliminary Purchasing Managers' Indices (PMI's) prepared by S&P Global for the month of May were released. Both manufacturing and services PMIs came in at 52.3, higher than the 49.9 and 51 expected, respectively, and in both cases implying an expansion of activity in the sectors, as they are above 50. On the other hand, new jobless claims came in at 227k this week, slightly lower than the expected 230k.

Against this background, the major US equity indices closed mixed yesterday. The S&P 500 closed unchanged, as did the Dow Jones, while the Nasdaq rose +0.3%. Thus, so far in 2025, the indices have accumulated changes of -0.7%, -1.6% and -2.0%, respectively.

US Treasury yields compressed yesterday, after a couple of rounds of gains. The one-year bond was at 4.12%, similar to the previous close, while the three-year bond fell to 3.97% from 4.01%. Similarly, the 10-year bond cut its yield from 4.59% to 4.54%.

Finally, inflation was published for the month of April in Japan. In monthly terms, prices evolved by +0.4% in April, while in year-on-year terms the change was +3.6%, slightly above analysts' consensus projections. The measure excluding food was +3.5% y-o-y for the same period.

Fuente: PUENTE Hnos, Bloomberg

US Treasury yields widened yesterday, following the US Treasury's

International

The US Treasury conducted a debt tender yesterday which, according to the Bloomberg news agency, did not meet the expected demand, causing bond yields to widen across the board. Last Friday, the Moody's rating agency downgraded the sovereign debt rating from Aaa to Aa1, in a scenario where the country's high fiscal deficit and public debt are being discussed.

In particular, Treasury yields moved higher yesterday. Thus, the 1-year bond rose slightly from 4.11% to 4.12%, the 3-year bond from 3.95% to 4.01% and finally, the yield on the 10-year bond rose from 4.49% to 4.59%, the largest change.

On the other hand, this news also impacted the major US equity indices, which declined yesterday. The S&P 500 declined -1.6% on the day, while the Nasdaq fell -1.4% and the Dow Jones -1.9%. This brings the indices back into negative territory so far this year, with changes of -0.6%, -2.3% and -1.6%, respectively.

In Europe, the Purchasing Managers' Index (PMI) for May released this morning showed contraction in the services sector (48.9 points) as well as in manufacturing (48.4 points), as both fell below 50 points. Analysts' forecasts were 50.4 and 49.2 respectively.

Finally, in Mexico, the final Gross Domestic Product (GDP) data for the first quarter of 2025 was published, showing a growth of +0.2% compared to the last quarter of 2024 and +0.8% year-on-year, in both cases in line with expectations.

Fuente: PUENTE Hnos, Bloomberg