The 'prices paid' component of the U.S. ISM services will get particular attention and could eventually support the short-end of the U.S. Treasury yield curve, Metzler's Uwe Hohmann and Yannik Mosbach say in a note. This component is expected to remain at an elevated level, albeit lower than in the previous month, the analysts say ahead of the release for June. "Should there be a downside surprise here--as was the case with the manufacturing sector--it would further fuel recent doubts regarding Fed rate hikes and provide support for the short end of the Treasury curve," they say. (emese.bartha@wsj.com)
Dow Jones Newswires
Downward Surprise in U.S. ISM Services Could Support Short-End Treasurys — Market Talk
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The 'prices paid' component of the U.S. ISM services will get particular attention and could eventually support the short-end of the U.S. Treasury yield curve, Metzler's Uwe Hohmann and Yannik Mosbach say in a note. This component is expected to remain at an elevated level, albeit lower than in the…