Morning View
The yield curve for U.S. Treasury bonds widened across the board, with the 10-year bond yielding 4.36%
International
On the fixed-income front, yields on U.S. Treasury bonds rose during yesterday’s trading session. The 1-year bond yield rose from 3.75% to 3.76%, the 3-year bond yield from 3.86% to 3.90%, while the 10-year bond yield rose from 4.34% to 4.36%.
The major U.S. stock indices closed yesterday’s session with widespread declines. The Nasdaq fell 0.8%, followed by the S&P 500 at 0.4% and the Dow Jones at 0.2%. Year-to-date, the indices have accumulated declines of 6.4%, 4.2%, and 4.0%, respectively.
In the United States, preliminary data for the March sectoral Purchasing Managers’ Indexes (PMIs), compiled by S&P Global, were released. The manufacturing PMI came in at 52.4 points, above expectations and February’s reading, while the services PMI stood at 51.1 and the composite PMI at 51.4 points. It is worth noting that a reading above 50 points indicates expansion of activity, while a reading below 50 points indicates contraction.
Source: PUENTE Hnos, Bloomberg
The week ended on a negative note for U.S. stock indices
International
Last week ended with widespread declines across the major U.S. stock indices. The S&P 500 fell by 1.5%, while the Nasdaq dropped by 2.0% and the Dow Jones by 1.0%. As a result, year-to-date, the indices have accumulated declines of -5.0%, -6.9%, and -5.2%, respectively.
This week, the focus will be primarily on the evolution of the geopolitical conflict between Iran and the U.S.-Israel alliance. On the economic front, the most significant event in the United States will be the release of the preliminary March Purchasing Managers’ Index (PMI) figures, compiled by S&P Global. For manufacturing, the latest reading was 51.6 points, while for services it was 51.7 points. We remind you that a reading above 50 points indicates expansion of activity, while a reading below 50 points indicates contraction. Meanwhile, in Chile, the decision on the benchmark interest rate will be announced, which is expected to remain unchanged at 4.5%.
Finally, U.S. Treasury bond yields rose on Friday. The 1-year bond yield rose from 3.72% to 3.79%, and similarly, the 3-year bond yield rose from 3.79% to 3.91%. Meanwhile, the 10-year bond yield rose from 4.25% to 4.38%.
Source: PUENTE Hnos, Bloomberg
