Afterpay (ASX:APT) share price bounces back above $100

Afterpay shares appear to be staging a comeback in June and are on the rise today…

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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%.

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Motley Fool contributor Kerry Sun owns shares in NextDC. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, WiseTech Global, Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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