Treasuries flattened slightly overnight in response to fears that Italian populists were getting close to coming to an agreement to write off €250bn of national debt. Risk assets sold off, with equities and commodities both down in European trading. The news that North Korea was considering pulling out of negotiations added to the risk-off tone.
On the data front, housing starts in the month of April fell to 1.29 million from 1.32 million in March, as new construction on apartment buildings fell 11.3%. The month over month change in industrial production came in higher than expected at 0.7% vs 0.6% and was a 0.2% increase from the prior month.
Director, Investment Management Group