Something Has to Give Here
In recent years as core CPI has trended this high, the U.S. 10 Year Treasury’s yield has ranged between 2.50% and 2.90% vs. 1.56% today. This week’s data is pointing to higher bond yields coming at markets near you.
Fed Might Still Manage 1, 2 Hikes This Year, Lockhart Says -Rtrs
Federal Reserve Bank of Atlanta President Dennis Lockhart says in interview with Reuters that there’s no real argument about inflation, and only a modest one over the financial stability implications of continuing to leave rates so low.
- “Committee is much tighter in its array of opinion, and the differences between points of view are more nuanced and more related to sooner versus a little later on questions of policy”
Friday, we found American consumers moved into a higher gear in the second quarter, spending at the fastest quarterly pace in two years, retail sales figures will probably show on Friday. Economists project a 0.3 percent gain in core sales for June, which would take the three-month annualized gain in the so-called retail control group to 6.6 percent barring revisions. The figure is used to calculate gross domestic product and excludes food services, auto dealers, home-improvement stores and gas stations. – Bloomberg
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