Consumer Confidence Improves, but Recession Expectations Rise – US Market Wrap

The world’s largest bond market fell after weak Treasury sales, with traders looking for clues on the policy outlook from mixed economic data and Federal Reserve speakers.

Treasuries extended losses after the US sold $70 billion in five-year notes at 4.553%, higher than the pre-auction level of 4.540%. An earlier offering of $69 billion in two-year notes was also considered soft. Just a few days before the Fed’s preferred price gauge, a report showed that US consumer confidence unexpectedly rose in May, though recession expectations also increased.

US 10-year yields rose eight basis points to 4.54%. The S&P 500 remained relatively unchanged. Nvidia rallied after the Information reported that Elon Musk’s artificial intelligence startup, xAI, which has raised $6 billion, will use the chipmaker’s H100 graphics processing units.