BOE, ECB, Bond Auction, Initial Claims, Wholesale Inventories
Today, another yield curve inversion as the 6 mo & 2 yr note are now above the 10 yr note.
At today's $8 billion 10 year note auction yields were lower than forecast , high yield was 4.975% vs 5.14% in May. Indirect bidder participation was 14.1%.
Inside the number:This sale was a so called reopening of the note sold last month. The share of the last three reopenings awarded to indirect bidders averaged 15%, compared with 42% for the last three new issue sales.
Initial Claims -35K to 302K, people collecting unemployment benefits -5K to 2.42 million in the week ending May 27.
Wholesale Inventories tightened in March and matched the lowest level on record.
Inside the number: Overall Sales +1.3% the largest since Sept 05. Overall Inventories +0.9%, inventory to sales ratio at an all time low 1.16.
Non durable goods sales +2.9%, non durable inventories also at an all time low 0.83. Tighter than desired inventories could lead to increased production in coming months, if demand can keep up.
Sales of durable goods -0.3%, inventories +1.2%, inventory to sales ratio UP to 1.51. Yes there is a slowdown occuring.
Today, the BOE (Bank of England) left its rate at 4.5%. However, central banks in Denmark, India (+25 bps), South Africa, South Korea, Turkey (+175 bps @ 15%) and the ECB (+25 bps to 2.75%) raised interest rates to contain inflation.
At today's $8 billion 10 year note auction yields were lower than forecast , high yield was 4.975% vs 5.14% in May. Indirect bidder participation was 14.1%.
Inside the number:This sale was a so called reopening of the note sold last month. The share of the last three reopenings awarded to indirect bidders averaged 15%, compared with 42% for the last three new issue sales.
Initial Claims -35K to 302K, people collecting unemployment benefits -5K to 2.42 million in the week ending May 27.
Wholesale Inventories tightened in March and matched the lowest level on record.
Inside the number: Overall Sales +1.3% the largest since Sept 05. Overall Inventories +0.9%, inventory to sales ratio at an all time low 1.16.
Non durable goods sales +2.9%, non durable inventories also at an all time low 0.83. Tighter than desired inventories could lead to increased production in coming months, if demand can keep up.
Sales of durable goods -0.3%, inventories +1.2%, inventory to sales ratio UP to 1.51. Yes there is a slowdown occuring.
Today, the BOE (Bank of England) left its rate at 4.5%. However, central banks in Denmark, India (+25 bps), South Africa, South Korea, Turkey (+175 bps @ 15%) and the ECB (+25 bps to 2.75%) raised interest rates to contain inflation.
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