Macro Briefing: 5 June 2024

* US 10-year Treasury yield drops sharply for fourth straight day
* Eurozone economy grows at fastest rate in a year: PMI survey data
* China services sector grows at fastest pace in 10 months
* US factory orders rose for a third straight month in April
* US job openings fell in April to lowest level in over 3 years:

US stock-bond correlation is running at the highest level in several decades, based on rolling 1-year correlation for a pair proxy ETFs (SPY for stocks and IEF for US Treasuries). The moderately positive correlation is associated with relatively weak diversification benefits for a stock-bond portfolio. The US Treasury yield curve, when it begins to normalize, may offer an early sign that the increase in the stock-bond correlation is set to normalize, advises a research note from TMC Research.