Weekly update: Bond yields rise, budget bill edge

Hope you are doing well. Last week brought higher government bond yields following House approval of a new budget bill, as well as firmer gold and Bitcoin pricing. Read on for a bite-sized summary of what you should know.

Weekly Stock Index Performance

The S&P 500 declined by 2.61%.
The Nasdaq 100 fell by 2.39%.
The Dow Jones Industrial Average was lower by 2.47%.

Budget Bill / Bond Yields

The One, Big, Beautiful Bill got the bond market a bit edgy last week. Bond yields shot higher last week, with most attention paid to the 30-year U.S. government bond yield as it traded above 5.0% for the first time since 2023. Rates on mortgages rose last week, too, with the average 30-year fixed mortgage trading near the 7.0% level, the highest since April 11th.

Bitcoin, Gold Rise

While stocks turned sluggish last week after the previous week’s rally, capital found its way into gold and bitcoin. Bitcoin reached a fresh all-time high last week, eclipsing $111,000 per coin. The potential immediate catalyst seemed to be sluggish demand for the U.S. Treasury’s 20-year bond auction. The price of gold also bounced last week ahead of the holiday weekend on safe-haven buying.

Existing Home Sales Decline

Data showed existing home sales fell by 0.5% month over month in April, making it the slowest April since 2009. High interest rates and sour consumer expectations seem to be combining to affect the spring housing market.

The Week Ahead

Attention this week turns to the Fed’s favorite inflation gauge, Core Personal Consumption Expenditures (PCE). Will the recent trend of in-line to lower inflation data continue with the on-again and off-again tariffs? Eyes will be on bond yields as markets further digest the budget bill and any developments in the Senate.

That’s it for this week’s update! If you’d like to explore any of these topics further or have any other questions or needs as the week unfolds, don’t hesitate to reach out. I am always here as a resource for you.