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Market Brief – Monday 6/27/22

Stocks rallied and Treasury yields rose in overnight trading as investors are highly convicted this is the early stages of the long-awaited Bear market rally. Stocks and Treasury yields fell in early trading.

Durable Goods New Orders rose +0.7%, excluding food and energy, Core Durable Goods New Orders rose +0.7%, excluding defense rose +0.6%, and non-defense, excluding aircraft rose +0.5% in May.

Pending Home Sales rose +0.7% in May, exceeding expectations of a negative print.

Today’s $46 billion 2-year Treasury Note auction was met with weak demand as foreign bidders took 51.5% of the auction and domestic bidders took 25.3% of the auction, leaving securities dealers with 23.2% of the auction.

Today’s $47 billion 5-year Treasury Note auction was met with weak demand as foreign bidders took 56.5% of the auction and domestic bidders took 19.7% of the auction, leaving securities dealers with 23.8% of the auction.

Stocks closed lower and Treasury yields closed higher on the day.