▸ Core government bonds sell off as investors eye monetary policy clues▸ Wall Street extends declines after Walmart warning on Trump’s tariffs▸ European stocks lack direction although Paris index underperformsCore government bonds sold off yesterday as investors focused on the annual central bankers' meeting at Jackson Hole for clues about the future path of monetary policy.A gauge of US economic activity in both the services and manufacturing sectors was stronger than analysts had expected.The closely watched S&P purchasing managers' index showed a reading of 53.3 for the manufacturing sector, well above the 49.5 projected, while the services sector reading of 55.4 also beat the expectation of 54.2. A reading over 50 indicates expansion.Goldman Sachs analysts said they had increased their projection for thirdquarter US GDP growth after the PMI data, raising it by 0.1 percentage points to 1.5 per cent annualised growth.Yields on benchmark 10-year Treasuries rose 5 basis points to 4.35 per cent after the data as investors bet that the US Federal Reserve might be more likely to hold interest rates steady.
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