Construction Spending Slips 0.1% in June, Prior Month Revised Lower

Treasury yields edged lower on the data, with the 2-year note slipping about 3 basis points to 4.12%. The dollar softened against the yen and the euro, though moves were modest ahead of the Fed's July policy decision next week.

Fed officials have said they need more evidence that demand is cooling before they can cut rates. A sustained weakness in construction would help that case, but one month of data does not change the broader picture. The currency strength meter shows the dollar still holding near recent highs against most major peers.

The next read on construction comes with the August report in late September. In the meantime, markets will parse the ISM manufacturing data due later today for further cues on economic momentum.