Bonds climb in busy week of Fedspeak; stocks mixed

Bloomberg

Treasuries climbed at the start of a busy week for economic data and Federal Reserve speakers. Stocks were mixed as traders assessed corporate earnings.
After last week’s jump in yields, long-term Treasuries outperformed their shorter-tenor peers as investors bought bonds at cheaper prices. The S&P 500 Index fluctuated as banks fell after Citigroup Inc’s results, while Broadcom Inc rallied on a news report that talks for the company to acquire Symantec Corp fell apart. Steelmakers gained after Donald Trump’s trade aide Peter Navarro said the president will sign an executive order boosting the use of the material in federal government contracts.
Investors will be sifting through speeches by Fed officials after Chairman Jerome Powell left it all but certain that the central bank will reduce rates this month for the first time in a decade. Key data points such as US retail sales will also be on the radar as the earnings season gets under way, with financials heavyweights reporting their results.
“We expect investors will now take time to weigh the results of S&P 500 Q2 earnings,” John Stoltzfus, the chief investment strategist at Oppenheimer & Co, wrote in a note to clients. “Our view remains that patience and keeping things in historical context will serve investors well through a period when a number of important outcomes remain in flux.”
Earlier on Monday, investors also assessed data showing that China’s economy slowed to the weakest pace since quarterly data began in 1992 amid the ongoing trade standoff with the US, while monthly indicators provided signs that a stabilization is emerging.
Elsewhere, Bitcoin slumped briefly below $10,000, following another weekend sell-off that saw some digital tokens plunge by more than 20 percent. The tumble comes days after Trump criticised digital coins on the heels of this year’s stellar rally.
JPMorgan Chase & Co, Bank of America Corp, Goldman Sachs Group Inc and Taiwan Semiconductor are among companies due to report results this week.
US June retail sales, due on Tuesday, are expected to rise from the prior month.
Monetary policy decisions are due in Indonesia, South Korea and South Africa on Thursday.
The S&P 500 Index fell less than 0.1 percent to 3,013 in New York. The Stoxx Europe 600 Index increased 0.3 percent. The MSCI Asia Pacific Index climbed 0.3 percent.
The Bloomberg Dollar Spot Index increased 0.1 percent. The euro fell 0.1 percent to $1.126. The Japanese yen fell less than 0.05 percent to 107.94 per dollar.
The yield on 10-year Treasuries declined two basis points to 2.10 percent. Germany’s
10-year yield sank four basis points to -0.25 percent. Britain’s 10-year yield decreased four basis points to 0.795 percent.
The Bloomberg Commodity Index sank 0.6 percent. West Texas Intermediate crude fell 0.1 percent to $60.17 a barrel. Gold decreased 0.1 percent to $1,410.90 an ounce.