U.S. economic data presents mixed signals, Treasury yields retreat
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(1) U.S. durable goods orders grew by 7.9% in April, far exceeding the market expectation of 3.5%, mainly driven by a surge in non-defense aircraft equipment orders. (2) The second estimate of first-quarter GDP growth was unexpectedly revised down from 2% to 1.6%; weekly initial jobless claims rose to 215,000 (previous value revised up to 210,000), exceeding expectations and indicating an acceleration in corporate layoffs. (3) The PCE inflation rate rose as expected from 3.5% to 3.8%. After the data release, the yield on 10-year U.S. Treasuries fell from 4.508% to 4.485%, while the yield on 2-year Treasuries dropped from 4.070% to 4.045%.
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