UK: Foreign Sec: Burnham Should Increase Defence Spend 'Further & Faster'

• US TSY 17W AUCTION: NON-COMP BIDS $467 MLN FROM $69.000 BLN TOTAL

• US TSY 1Y-11M FRN AUCTION: NON-COMP BIDS $21 MLN FROM $28.000 BLN TOTAL

The Dallas Fed's Texas Service Sector Outlook Survey showed a modest tickup in general business activity (-7.7 from -9.9) in May, but that was enough to beat the -6.0 consensus for a 3-month high, while the revenue index ("a key measure of state service sector conditions") was relatively steady at 5.0. In sum, the report was relatively soft - with a notable increase in pessimism. 

• The broad theme was similar to that in the Texas manufacturing survey: a pickup in the headline activity index but with the details leaning to the weaker side. If anything, the anecdotals appeared more pessimistic than that those included in the manufacturing survey, particularly on the demand side.
• "Labor market measures suggested a slight decline in employment in May and no change in workweeks", while capex was flat.
• Looking ahead, future revenues fell 3 points though were still in "solid positive territory" at 28.9; conversely general activity was seen weaker in 6 months with a -0.7 index, the first negative reading in 12 months.
• That came despite current prices paid ticking lower to 29.7 from April's 12-month high 31.2, still elevated but appearing to stabilize (something we've seen in most regional Fed surveys this month). Prices received receded to 5.0 from 8.3.