Treasuriesheld steady overnight and into the open as investors awaited the 2Q GDP report released this morning. At the release of the report, the dollar fell and Treasuries rose as the data reflected that the U.S. economy expanded at a slower pace than expected. GDP Annualized grew 4.10% QoQ versus an expected 4.20% growth per consensus, following an upwardly revised 2.20% growth in the first quarter. Consumer spending gained more than expected at 4.00% versus 3.00% per consensus, while its first quarter data was revised down from 0.90% to 0.50%. GDP Price Index also rose more than expected at 3.00% versus 2.30% per survey, but its first quarter print also showed a downward revision from 2.20% to 2.00%. Lastly, the Core PCE came in shy of expectations at 2.00% versus 2.20% per consensus, and its previous mark of 2.30% was revised down to 2.20%.
We also received the final reading of the July University of Michigan Sentiment which came in higher than expected at 97.90 versus 97.10 per consensus. Its previous mark remained unchanged at 97.10. The University of Michigan 1 year inflation came in at 2.90% which was unchanged from its prior mark and the 5-10 year inflation showed 2.40% which was also unchanged from its prior mark. The August FOMC meeting is scheduled next week which will begin on Tuesday and conclude on Wednesday with the Fed's announcement of its latest monetary policy.
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