U.S. June ISM Services Index Falls Sharply Below Expectations

The U.S. June ISM services PMI fell to 48.8, well below the expected 52.6 and May's 53.8.

Business activity and new orders dropped sharply, while the price index hit a three-month low, and the employment index shrank for the fifth consecutive month.

Following the data release, U.S. Treasury yields fell significantly, gold rose, and the dollar declined.

The ISM services data contrasted sharply with the earlier strong Markit services PMI.