• Wall Street equities rallied on April 26, with the DJI surged by +0.40%, the S&P 500 advanced by +1.02%, and the Nasdaq closed up by +2.03%.
• US stock indexes surged, with the S&P 500 and Nasdaq 100 reaching recent highs, buoyed by strong tech earnings. Despite growing concerns over the Fed’s interest rates stance, markets held onto gains, even as March personal spending and core PCE deflator exceeded expectations.
• US Treasury 10-yr yields declined by -3.0 bps to 4.67%, while 2-yr yields remained unchanged at 4.96%. T-notes prices rose moderately as concerns about inflation eased, driven by the unchanged of the US March PCE core deflator at +2.8% YoY, consistent with February.
• In March, the US PCE price Index saw a 0.3% MoM increase, matching February's figure and meeting market forecasts. The annual rate rose to 2.7%, exceeding expectations of 2.6%. Meanwhile, the annual core inflation rate remained unchanged at 2.8%, against market expectations of a decrease to 2.6%.
• In April, the University of Michigan's US Consumer Sentiment Index was revised downward to 77.2, below the expected 77.9. One-year inflation expectations rose to +3.2% from +3.1%, while five to ten-year expectations remained at 3.0%.
• Meanwhile in Asia, the core Consumer Price Index (CPI) in Tokyo, a key indicator of national price trends, rose by 1.6% YoY in April. This growth rate represents a slowdown from the previous month's 2.4% increase and falls short of the median forecast for a 2.2% rise.
• Global bond yields moved lower on Friday; The German bond yield fell by -5.5 bps to 2.57%, the UK 10-yr gilt yield slid by -3.80 bps to 4.32% and the Japanese 10-yr JGB yield closed down by -0.80 bps to 0.89%.
