• Wall Street ended mixed on September 25, with the DJIA fell by -0.70%, and the S&P 500 declined by -0.19%, while Nasdaq edged up by +0.04%.
• US equities retreated from earlier highs on Wednesday, with major indexes closing mixed as investors debated economic conditions and the possibility of a significant rate cut. Equities faced selling pressure as higher T-note yields and negative corporate reports weighed on the market.
• The 10-yr UST yield surged by +5.0 bps to 3.79%, and the 2-yr yield grew by +4.0 bps to 3.53%. Supply pressures weighed on T-notes Wednesday as the Treasury auctioned USD70 billion in 5-yr T-notes and USD28 billion in 2-yr floating-rate notes.
• US MBA mortgage applications jumped +11.0% for the week ending September 20, as the average 30-year fixed mortgage rate dipped by 2.0 bps to 6.13%, marking a 2-year low.
• The new home sales in the US declined by -4.7% MoM to a seasonally adjusted annual rate of 716,000 in August 2024. This decline followed a revised 10.3% increase in July but still exceeded market expectations of 700,000 sales.
• Meanwhile, US building permits advanced by +4.6% MoM in August 2024 to a seasonally adjusted rate of 1.47 million, reversing a -3.3% MoM drop to 1.41 million in July.
• In Asia, The PBoC slashed its one-year medium-term lending facility rate by 30 bps to 2.0% on September 25th, down from 2.3% in August. Investors welcomed this proactive measure to boost China’s sluggish economy, which may also benefit emerging markets, including Indonesia.
• Global bond yields were mixed on Wednesday, with the 10-yr German bund yield rose by +2.8 bps to 2.17%, the 10-yr UK gilt yield closed up by +4.9 bps to 3.99%, while the 10-yr Japanese JGB edged down -0.1 bps to 0.82%.
