The Brexit vote spooked many and produced quite a few side effects most undesirable. Large currency declines, more than a few sharp drops in interest rates, at least one significant bank bailout and of course numerous calls on central banks to reduce interest rates and provide more stimulus. Here in the USA despite the Feds steady talk of higher interest rates the 30-year and 10-year Treasury bonds are approaching record low yields with the 30-year looking to match its 2.22% yield hit in January of 2015, currently it is at 2.26%. The 10-year record low was set in July 2012 at just 1.38% currently it is at 1.46%. Apparently the markets don’t buy the Fed’s happy talk.
Final 1st quarter GDP was revised up to +1.1% a little better than expectations on improved export and residential construction data. Price pressures remain weak and were revised down to just +.4% which also contributed to the higher top line figure. On the downside personal consumption expenditures, aka consumer spending slipped to 2% annualized, a more than 2-year low.
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