Investors cautious despite strong data

<p>Kia ora,</p><p>Welcome to Wednesday's Economy Watch where we follow the economic events and trends that affect New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news that while the global recovery is certainly underway, investors seem nervous about where to from here.</p><p>The Conference Board is <a href="https://conference-board.org/data/consumerconfidence.cfm" target="_blank"><strong>reporting</strong></a> high but unchanged American consumer sentiment levels in May.</p><p>Sales of <a href="https://www.census.gov/construction/nrs/pdf/newressales.pdf" target="_blank"><strong>new single family home sales</strong></a> in the US stumbled in April, mirroring the hesitation in the existing homes market. After jumping to a new higher level in June/July 2020, it has been a slow trend shift lower since. And the level of unsold units is creeping up. Meanwhile, March brought a high annual rate of price growth in home prices, up +13.2% pa and the highest since December 2005, according to the <a href="https://www.spglobal.com/spdji/en/index-family/indicators/sp-corelogic-case-shiller/sp-corelogic-case-shiller-composite/" target="_blank"><strong>Case-Shiller index</strong></a>.</p><p>The next US regional Fed <a href="https://www.richmondfed.org/-/media/richmondfedorg/research/regional_economy/surveys_of_business_conditions/manufacturing/2021/pdf/mfg_05_25_21.pdf" target="_blank"><strong>manufacturing survey,</strong></a> this one from the Richmond Fed, shows activity is holding high in May, but that price pressures are unusually extreme. Employment levels are little-changed.</p><p>There was a <a href="https://www.treasurydirect.gov/instit/annceresult/press/preanre/2021/R_20210525_2.pdf" target="_blank"><strong>UST 2yr note auction</strong></a> earlier today and yields fell. This one went for +0.11% pa for the US$71.6 bln offered (the Fed took US$11.6 bln). At the <a href="https://www.treasurydirect.gov/instit/annceresult/press/preanre/2021/R_20210426_