Although the June retail sales data announced on Friday in the USA increased by 1 percent stronger than the expectations the University of Michigan data released later revealed that the long-term consumer inflation expectations in the country fell at the beginning of July. Accordingly, the inflation expectation for the next 5-10 years was announced as 2.8 percent below the forecasts.
After the data, the Dollar Index carries its decline for two consecutive days, while the dollar depreciates against all G-10 currencies in the first transactions of the new week. The fall in inflation expectations also increased the demand for USA long-term bonds. The USA 10-year Treasury yield fell 4 basis points to 2.9152 percent on Friday.
Wall Street indices followed the data and balance sheets announced on Friday, while bank stocks rose, led by the expectation that the Fed's rate hike would be at a reasonable level. U.S.A. bank stocks surged the fastest in 18 months on Friday supported by Citi's second-quarter balance sheet.
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