Action Packed Calendar But No Major Action in Bonds

Action Packed Calendar But No Major Action in Bonds

This morning’s economic calendar was certainly the most action-packed of the present week. GDP had something for everyone. The evening news can no doubt harp on the “negative” headline while the financial market immediately understood the impact of a massive surge in imports. Numbers that exclude those accounting impacts make domestic consumption look normal and right in line with last quarter. Inflation was tame, but traders are waiting for future, tariff-affected reports. Treasury issuance was confirmed to hold flat, and the “massive” 6% increase in pending home sales is like a team who won 2 games this year vs 1 game last year saying their won 100% more.  By the end of the day, bonds were almost perfectly unchanged, even after month-end trading brought a big of volatility at 3-4pm ET.