Key Facts
• On July 18, US Treasury yields fell, led by short- and mid-term bonds.
• Fed Governor Christopher Waller suggested he would oppose a rate hold at the July FOMC.
• University of Michigan survey showed 1-year inflation expectations dropped to 4.4% from 5%.
• S&P 500 index remained nearly flat, hitting an intraday high before slight declines.
• Michigan Consumer Sentiment Index rose to 61.8, a 5-month high.
• Dollar index declined after Waller’s comments, while yen traded in the 148 range.
• MUFG strategists recommended shorting yen ahead of Japan’s upper house election.
• Crude oil prices dipped slightly, with WTI futures closing at $67.34 per barrel.
• Gold prices rebounded, with spot gold rising 0.7% to $3,351.46 per ounce.
• Year-to-date gold prices have risen over 25%, driven by geopolitical tensions and dollar concerns.
Summary
US Treasury yields dropped on July 18, driven by Fed Governor Christopher Waller’s indication of opposing a rate hold at the upcoming FOMC meeting. Inflation expectations eased, with the University of Michigan reporting a decline to 4.4% from 5%. The S&P 500 index remained stable, while consumer sentiment hit a 5-month high. The dollar index fell following Waller’s comments, and the yen traded weakly ahead of Japan’s upper house election. Crude oil prices saw slight declines, with WTI futures closing at $67.34 per barrel. Gold prices rebounded, supported by lower yields and dollar weakness, with spot gold rising 0.7% to $3,351.46 per ounce. Year-to-date, gold has gained over 25%, reflecting investor concerns over geopolitical risks and dollar-denominated assets.
