On a week fraught with important economic data, the results continue coming in on the weaker side of forecasts and bonds continue to like it. While yesterday’s JOLTS data was quite a bit lower than forecast, today’s relevant reports came in closer to home. As such, it’s no surprise to see smaller gains. But even if today’s tame data merely served to solidify the gains seen yesterday, it’s a win.
Of the two reports, it’s quite clearly GDP that’s helping bonds maintain the gains. There wasn’t much of a reaction to ADP employment data, and it was potentially weaker to boot. GDP, on the other hand, was unequivocally helpful (2.1% vs 2.4% f’cast, and a modest decline in the price index).