Sovereign bond yields fell on both sides of the Atlantic with curves flattening, especially in the US, as long-term yields fell comparatively more. US yields declined amid signs of weaker demand, after new single-family home sales fell unexpectedly in May for a second consecutive month.
In FX markets, the US dollar strengthened despite slightly softer Fed rate hike expectations. In equities, Asian markets traded unevenly, while European indices mostly declined. US equities also fell, although the S&P 500 outperformed the Nasdaq, supported by non-tech sectors benefiting from lower oil prices and reduced geopolitical risk.