According to Reuters, the two-year U.S. interest rate swap spread--a gauge of financial system stress--was quoted at a record high 166.5 basis points in Asia, suggesting that concern about defaults among banking counterparties were worsening.
The Institute for Supply Management's index of manufacturing activity, a forward-looking gauge of the strength of the U.S. manufacturing sector, came in at 53.7 on June 5, a level consistent with economic expansion.