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Published Time: 30.05.2024 - 11:04:59 Modified Time: 30.05.2024 - 11:04:59

Tomorrow the personal-consumption expenditures price index is released. It's the Federal Reserve's preferred measure of inflation and could have a bearing in the central banks future rate policy. Stock


Tomorrow the personal-consumption expenditures price index is released. It's the Federal Reserve's preferred measure of inflation and could have a bearing in the central banks future rate policy.

By

Paulo Trevisani, Dow Jones Newswires

Treasury yields weaken as the U.S. April pending home sales index declines 7.7%, much more than the consensus 0.7% fall in a Wall Street Journal survey, and follow a 3.4% rise in March.

Markets have been looking for any signs of economic slowdown that could persuade the Fed to start cutting rates, although it is unclear what impact, if any, the housing data could have on monetary policy.

Treasury yields were already declining after a downward revision on 1Q GDP estimate and higher-than-expected weekly jobless claims.

The 10-year is now at 4.559% and the two-year at 4.931%. Tomorrow, April PCE core annual inflation index is expected to slow slightly.

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By

Ed Frankl, Dow Jones Newswires

The number of houses going under contract tumbled in April, as high interest rates dampened purchases, despite greater supply. Here are the main takeaways from the National Association of Realtors' report released Thursday:

--The pending home sales index, a leading indicator of home sales based on contract signings, decreased 7.7% compared with a month earlier to 72.3 in April. It was 78.3 in March. A reading of 100 is equal to the level of contract activity in 2001.

--Economists polled by The Wall Street Journal had expected the index to fall just 0.7%.

--"The impact of escalating interest rates throughout April dampened home buying, even with more inventory in the market," said Lawrence Yun, NAR's chief economist.

--However, the Federal Reserve's likely rate cut later this year should lead to improved affordability and more supply, he added.

--All four regions saw contract signings fall in April. The Midwest dropped by the most, down 9.5%, followed by falls of 8.5% in the West, 7.6% in the South and 3.5% in the Northeast.

--Compared with a year ago, pending sales were down 7.4%, will all regions again showing declines.

--"Home prices are hitting record highs, but the pace of gains should decelerate with more supply," Yun noted.

By

Paulo Trevisani, Dow Jones Newswires

The dollar follows Treasury yields and weakens following data indicating a possible cool down of the U.S. economy.

First-quarter GDP growth was revised down to 1.3% from 1.6%, as expected, while weekly jobless claims rose more than forecast, to 219,000 from an revised 216,000.

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