Treasury prices were initially higher overnight on news that China ordered the U.S. to close its consulate in Chengdu, but the rally didn’t last long with long-end prices reversing course on better than expected PMI data from Germany, France, and the UK. Equity markets remain more focused on the U.S./China news. China’s Shanghai Composite closed down 3.9%, and S&P 500 futures remain in negative territory despite the positive data surprise in Europe. Next week’s economic calendar will be headlined by the first estimate of Q2 GDP (Thursday) and the July FOMC meeting (Wednesday). For GDP, the current Bloomberg median survey estimate is -35% for topline growth.
Chief Investment Officer
|7/24/2020||Markit US Manufacturing PMI||52||—||49.8||—|
|7/24/2020||Markit US Services PMI||51||—||47.9||—|
|7/24/2020||Markit US Composite PMI||—||—||47.9||—|
|7/24/2020||New Home Sales||700k||—||676k||—|
|7/24/2020||New Home Sales MoM||3.60%||—||16.60%||—|
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