Benchmark 10-year notes last rose 9/32 in price to yield 2.0979%, from 2.127% late on Wednesday
· In currencies, the U.S. dollar was little changed against the euro as investors were slow to take large positions before the Fed meeting and the G20 summit later in June when U.S. and China leaders are expected to discuss trade.
The dollar index, which tracks the greenback against six major currencies, rose 0.05%, with the euro down 0.12% to $1.1273.
· The number of Americans applying for unemployment benefits unexpectedly rose last week, potentially adding to concerns about the U.S. labor market after May job growth slowed. Other data showed import prices fell by the most in five months in May in the latest indication of muted inflation pressures, adding to expectations the Fed will cut rates this
· Morgan Stanley’s Business Conditions Index, which captures turning points in the economy, fell by 32 points in June, to a level of 13 from a level of 45 in May. This drop is the largest one-month decline on record and the lowest level since December 2008 during the financial crisis, according to the firm.
Fears of a possible economic slowdown were raised last week after a much worse than expected jobs report. The economy added just 75,000 jobs in May, according to the Labor Department last Friday. A report Thursday showed a spike in jobless claims last week. Manufacturing activity last month grew at the slowest pace in two years.
· Three of the 10 candidates standing in the leadership contest were eliminated from the race Thursday after failing to get the required backing of at least 17 colleagues in secret ballots; they were Andrea Leadsom, Esther McVey and Mark Harper.
The favorite to win the leadership race, Boris Johnson, got 114 votes. His nearest rival, Jeremy Hunt, got 43 votes. Environment Secretary Michael Gove got 37 votes.
The next round of vote takes place on Tuesday, June 18. Candidates will then need at least 33 votes to proceed to the next round of balloting
· Oil prices rose as much as 4% on Thursday following attacks on two tanker ships off the coast of Iran that renewed fears of conflict in the Middle East after a series of strikes last month.
U.S. West Texas Intermediate crude settled $1.14 higher at $52.22, gaining 2.2% on the day after topping out at $53.45 earlier in the session.
Brent crude, the international benchmark for oil prices, rose $1.34, or 2.2%, to $61.31 per barrel. Brent earlier rose as high as $62.64.
· The United States blamed Iran for attacks on two oil tankers in the Gulf of Oman on Thursday that drove up oil prices and raised concerns about a new U.S.-Iranian confrontation.
Crude oil prices spiked more than 4% after the attacks near the entrance to the Strait of Hormuz, a crucial shipping artery for Saudi Arabia and other Gulf energy producers. Prices later settled about 2% higher.
Reference: CNBC, Reuters
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