Posted To: MBS Commentary
Bond markets began the day in slightly weaker territory, with Treasuries following European yields higher in the overnight session. Domestic hours brought more selling pressure out of the gate with Q1 wage growth coming in higher than expected. There were also some counterpoints in the GDP data that made the 0.7 vs 1.2 result look more palatable. Namely, inventories cut 0.9% from the GDP headline. That means GDP would have come in at 1.6 vs 1.2 with a neutral inventory build. Finally, the PCE and core PCE components of the GDP report were downright unfriendly to bonds. PCE was up 2.4% vs 2.0% previously and core PCE came in at 2.0% vs 1.3% previously. Those are pretty massive swings in inflation metrics--certainly enough to convince a few traders of a faster Fed rate hike timeline. Perhaps...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
from Mortgage News Daily http://ift.tt/2qotYPF
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