The Afterpay Ltd (ASX: APT) share price has tipped higher today, currently up 4.77% to $104.61.
This marks the return to a triple-digit share price for Afterpay after it slipped below the iconic $100 level on 6 May.
June is currently looking like a bumper month for Afterpay shareholders, with the company’s shares up by about 13% for the month so far.
Afterpay share price stages a much needed recovery
Things were looking pretty gloomy for the leading buy now, pay later (BNPL) company when its shares briefly hit an 8-month low of $81.85 on 13 May.
The harsh selling pressure in early May dragged the year-to-date performance of the Afterpay share price to a low of -30% at the time.
But with “sell in May and go away” behind us, Afterpay shares have set out in June on the right foot, making up for lost time.
Despite no price-sensitive announcements since Afterpay’s third-quarter results on 20 April, the broader tech sector has bounced back strongly alongside a fall in benchmark US yields.
Tech shares bounce back
The S&P/ASX 200 Info Tech Index (ASX: XIJ) is up about 7.6% in June, with large-cap players including WiseTech Global Ltd (ASX: WTC), Xero Limited (ASX: XRO) and NextDC Ltd (ASX: NXT) all rising between 3.50% and 10%.
Elsewhere, the BNPL sector is also enjoying some buying support, with the Zip Co Ltd (ASX: Z1P) share price up almost 6% today to $7.28.
US benchmark yields ease
Benchmark US Government bond yields previously surged from lows of 0.50% in late 2020 to as high as 1.7% in April.
The spike in bond yields at the start of the year accelerated the rotation from high-growth technology shares into value sectors expected to benefit from a rebound in economic growth. This drove a number of heavy selling sessions for the tech-heavy Nasdaq across late April and early May.
In the last five trading sessions, US benchmark yields took a 10% fall from about 1.625% to 1.459%.